#BreakingCryptoNews
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have reached a settlement, bringing an end to their long-running legal battle over the classification of XRP. As part of the agreement, Ripple will pay a reduced fine of $50 million, significantly lower than the originally proposed $125 million. The settlement is awaiting final approval from the SEC commissioners and the presiding judge.
Stuart Alderoty, Ripple’s Chief Legal Officer, confirmed that the SEC will retain $50 million of the fine, which has been held in escrow. Additionally, the SEC has withdrawn its appeal regarding a prior ruling that XRP sold on public exchanges does not constitute a security. In return, Ripple has agreed to drop its appeal against the judgment that $728 million worth of XRP sales to institutional investors fell under securities laws.
News of the settlement had an immediate positive impact on XRP’s market value, with its price increasing following the announcement. In a notable development, former President Donald Trump acknowledged XRP’s potential role in the U.S. government’s crypto reserves and suggested an XRP exchange-traded fund (ETF) could be approved later this year.
This resolution marks a pivotal moment for the cryptocurrency industry, signaling a shift towards a more favorable regulatory environment. The SEC’s decision to settle the case, along with recent regulatory moves, suggests a broader trend toward clearer and more supportive policies for digital assets.
