On May 9, documents from the court showed that Ripple and the U.S. Securities and Exchange Commission (SEC) had reached a settlement agreement that calls for lifting the ban imposed on Ripple by the court in August 2024, in addition to reducing the civil penalty owed.
Under the agreement, Ripple will only pay $50 million out of the $125 million civil penalty to the SEC, while the remaining $75 million will be returned to the company. Both parties agreed not to appeal or seek to overturn the previous ruling.
It is worth noting that this case dates back to 2020 and concerns Ripple's sale of XRP as securities without the necessary registration, which the SEC considered a violation of regulatory laws.
Despite reaching this settlement, the commissioner of the Securities and Exchange Commission, Caroline Crenshaw, expressed her strong opposition to the agreement, considering that it undermines the authority of regulators, undermines court decisions, and increases regulatory gaps in the digital asset market.
However, this settlement is still conditional on court approval through the issuance of a "guiding judgment," as well as the need for approval from the appeals court before the settlement can officially take effect.
What do you think is next for XRP?