The settlement between Ripple Labs and SEC concludes a long legal battle and brings significant changes to the cryptocurrency market.
Key Points of the Settlement
Ripple Labs reached a settlement with SEC regarding its use of the **XRP token**, resulting in a reduced penalty and the return of $75 million. This outcome follows a legal dispute that began in 2020.
SEC's Internal Criticism
SEC Commissioner [Caroline Crenshaw](https://www.sec.gov/newsroom/speeches-statements/crenshaw-statement-ripple-050825) criticized the settlement for potentially weakening the SEC's regulatory stance and investor protection. Another commissioner, **Hester Peirce**, known for her pro-innovation viewpoint, urged the need for clear regulatory guidelines.
Impact on the Crypto Market and XRP
This legal outcome directly impacts the **XRP token**, providing regulatory clarity that could influence broader market compliance strategies. Additionally, the implications of this decision may extend to other U.S. listed altcoins.
The SEC settlement with Ripple may shape future regulatory actions and influence the compliance landscape for cryptocurrencies.
