The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has come to a close, marked by a key settlement in favor of the crypto company.
Conclusion of the Legal Battle
Stuart Alderoty, chief legal officer at Ripple, announced that after over four years of legal proceedings, the company has settled its conflict with the SEC. The SEC will retain only $50 million of the $125 million fine imposed on the company.
Details of the Settlement
The SEC plans to ask the court to lift the injunction imposed by Judge Analisa Torres, which barred Ripple from selling XRP tokens to institutional investors. While the agency has yet to conduct an internal vote to finalize the agreement, approval seems highly likely given the SEC's pro-crypto shift.
Market Reaction and Ripple's Next Steps
Last week, the SEC withdrew its appeal against Ripple, causing a brief XRP rally. In a Bloomberg interview, Ripple CEO Brad Garlinghouse stated that the company was weighing its options and was 'in the driver's seat'. Following Alderoty's announcement, XRP saw a minimal increase of 1.25%, indicating that market participants had already moved on.
The conclusion of Ripple's legal battle with the SEC highlights significant shifts in crypto companies' relationships with regulators. Ripple's future actions will reveal how the company adapts to new circumstances.
