According to a new report, the SEC and Ripple are seeking to extend their timeline for reaching a settlement in a landmark case for the crypto industry.
Settlement Negotiations
The U.S. Securities and Exchange Commission (SEC) and Ripple have filed a request with the U.S. Court of Appeals for the Second Circuit to continue their appeals while awaiting a final resolution. This request follows a joint motion submitted on June 12, in which the parties asked the court to lift the injunction against Ripple and allow for $50 million in escrow to be allocated to the SEC.
Court Decisions and Penalties
In July 2023, Judge Analisa Torres ruled that secondary sales of the XRP cryptocurrency do not qualify as securities, marking a significant win for Ripple and the broader crypto industry. However, Ripple's sale of XRP to institutional investors was found to violate securities laws, resulting in a $125 million penalty.
Significance of the Case for the Crypto Industry
The SEC vs Ripple case is a landmark lawsuit that could significantly impact cryptocurrency regulation in the U.S. Formally ending the litigation will be a symbolic victory for the crypto industry, which has made significant strides towards legitimacy in the world's largest economy.
Current negotiations between the SEC and Ripple regarding the settlement of this case highlight key aspects of cryptocurrency regulations. Further actions are expected to be disclosed by August 15, 2025.
