After nearly five years of courtroom drama, the Ripple vs. SEC case is reaching its conclusion. Ripple and the U.S. Securities and Exchange Commission have requested a New York court to release $125 million from escrow funds.
Joint Filing by Ripple and SEC
In December 2020, the SEC filed a lawsuit against Ripple, accusing the company of raising $1.3 billion through unregistered XRP sales. After several significant rulings and appeals, Ripple and the SEC have reached a final agreement.
According to their joint filing, $50 million from the escrow account will be allocated to the SEC as a civil penalty, while Ripple will receive the remaining $75 million pending court approval. In their letter to the court, both parties noted that this action avoids further appeals and officially closes the lengthy lawsuit.
Legal Status of XRP Clarified
This motion follows Judge Analisa Torres’s 2023 ruling that clarified XRP is not a security when traded on secondary markets. This judgment provided Ripple and the broader crypto industry a significant boost in credibility.
However, the court also found that early XRP sales to institutional investors do qualify as securities. Ripple CEO Brad Garlinghouse referred to the SEC’s decision to drop its appeal as a 'milestone moment' for the entire industry.
XRP Price Holds Steady After News
Following the news, XRP has shown signs of recovery despite recent market downturns. The token is currently trading at around $2.16, reflecting a 2.45% increase in the last 24 hours.
Experts identify key resistance at $2.35, with potential upside toward $2.44–$2.60 if momentum builds. On the downside, support is near $2.05.
The completion of the Ripple vs. SEC case may significantly affect the cryptocurrency market, providing confidence to both Ripple and other industry participants.
