XRP News Today: Ripple Labs Reaches $125M Settlement With SEC, XRP Surges 7.65%

The long-standing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) has moved a step closer to resolution as the two parties reached a settlement agreement on May 8. The agreement, if approved by the court, would release $125 million in escrow funds back to Ripple Labs. Instead of the previous judgment, which required the blockchain firm to pay the amount in fines, the new agreement stipulates that Ripple Labs would pay the Commission $50 million and have the remaining escrow funds released.

The deal marks a significant shift from the SEC's previous stance, which argued that the court’s decision was erroneous and continued to insist that the contracts by which the token is sold are securities, despite XRP itself not being a security. This settlement aligns with the expectations set during President Donald Trump’s campaign and the SEC’s pivot following the change in Administration. The Commission explained the agreement as part of its effort to revamp the regulatory framework for cryptocurrencies.

The news about the deal had an immediate and positive effect on XRP, as the token soared 7.65% within a day. At press time on May 9, XRP was changing hands at $2.39. The rally ensured that the cryptocurrency is now 32.85% in the green in the monthly chart and helped it cross the previously troublesome threshold at $2.29, a price level rejected twice in late April.