Big News for XRP Lovers!!!
On May 8, the court filed by the SEC showed that Ripple and the SEC have agreed to drop their appeals in the Second Circuit Court of Appeals, ending a legal fight that started in December 2020.
This decision came after a significant ruling in 2023 by Judge Analisa Torres, who said that selling XRP to public exchanges was not against securities laws, but selling it to institutional investors was. If the agreement is approved, the court will release a $125 million civil penalty held in escrow, with 50 million going to the SEC and the rest back to Ripple.
The settlement clearly states that neither side will try to change the 2023 summary judgment, keeping the court’s ruling that only institutional XRP sales broke the law. However, not everyone at the SEC agrees with this.
SEC Commissioner Caroline A. Crenshaw criticized the settlement, saying it is “a tremendous disservice to the investing public” in a strong dissent on the agency’s website. She believes it weakens the SEC’s power to hold crypto companies responsible and sends a wrong message to the market. She also worries that this agreement could be part of a larger slowdown in the SEC’s efforts to enforce crypto regulations, which might leave investors less safe.
Still, the SEC argues that the agreement is fair and good for the public. They pointed out that the case helped clarify the legal rules for token sales, giving more understanding to the crypto industry. However, Crenshaw’s comments could lead to new discussions about how the SEC should handle digital assets in the future.
Thankyou