XRP News Today: Ripple Settles With SEC For $50 Million, Ends 4-Year Legal Battle

Ripple has reached a settlement agreement with the U.S. Securities and Exchange Commission (SEC), aiming to lift the ban imposed on Ripple in a court ruling scheduled for August 2024. According to the agreement, Ripple will pay only $50 million of the $125 million civil fine to the SEC, with the remaining $75 million to be returned to Ripple. Both parties have agreed not to appeal the decision or seek to overturn the previous ruling. This case, which has been ongoing since 2020, involves the sale of XRP as a security. SEC Commissioner Caroline Crenshaw publicly opposed the agreement, stating that it undermines regulatory authority, disrupts court rulings, and exacerbates regulatory gaps. The agreement still requires a "declaratory judgment" from the court and approval from the appellate court before it can take effect.

This settlement marks a significant development in the long-standing legal battle between Ripple and the SEC. The dispute began in 2020 when the SEC filed a lawsuit against Ripple, alleging that the company had sold XRP as an unregistered security. The outcome of this case has been closely watched by the cryptocurrency industry, as it could set a precedent for how digital assets are regulated in the United States. The proposed $50 million resolution deal represents a substantial reduction from the original $125 million fine, indicating a willingness on both sides to reach a compromise and avoid further legal proceedings. The agreement also includes a provision that both parties will not appeal the decision, suggesting a mutual desire to move forward and resolve the dispute amicably.

However, the settlement has not been without controversy. SEC Commissioner Caroline Crenshaw expressed her opposition to the agreement, arguing that it undermines the regulatory authority of the SEC and disrupts the court's rulings. She also raised concerns about the potential regulatory gaps that could arise from the settlement. Despite these objections, the agreement still requires a "declaratory judgment" from the court and approval from the appellate court before it can take effect. This means that the legal process is not yet complete, and there is still a possibility that the settlement could be challenged or modified. The outcome of this case will have significant implications for the cryptocurrency industry, as it could set a precedent for how digital assets are regulated in the United States. The proposed settlement represents a significant step towards resolving the dispute, but the final outcome remains uncertain.