Ripple will pay 50 million dollars to the SEC as part of a proposed settlement of 125 million dollars. Ripple reached an agreement with the SEC, agreeing to pay a fine of 50 million dollars. The SEC and Ripple have dropped their appeals, signaling the end of the legal battle. Ripple Labs agreed to pay 50 million dollars to the U.S. Securities and Exchange Commission (SEC) as part of a proposed settlement. This agreement was reached nearly four years after the SEC first filed a lawsuit against the company. Both Ripple and the SEC jointly filed a motion in the U.S. District Court for the Southern District of New York on Thursday, May 9, asking the court to approve the deal. Ripple and the SEC dropped their appeals in the 125 million dollar case regarding XRP. The case was initiated in December 2020, when the SEC accused Ripple of violating federal securities laws. The agency alleged that Ripple sold its digital token XRP to institutional investors but did not register it as a security. Initially, the SEC sought a fine of 2 billion dollars. Later, the court ordered Ripple to pay only 125 million dollars, which was a significantly lower amount. Now, as part of the proposed settlement, Ripple will have to pay 50 million dollars to the SEC. The remaining 75 million dollars, which were in escrow, will be paid by Ripple. Both parties agreed to withdraw their appeals by submitting a mutual resolution to proceed. Judge Analisa Torres, who presided over the case, previously ruled that Ripple's sales of XRP on public exchanges did not violate securities laws. This was considered a partial victory for Ripple. On the other hand, the court ruled that the company is still liable for selling XRP directly to institutional investors. Thus arose the fine of 125 million dollars. In their submission of the settlement, Ripple and the SEC also urged the court to lift the ban on their operations. If the court approves the request, the lawsuit will be sealed, and Ripple will reclaim the funds held in escrow. Ripple is aiming for growth as legal uncertainty begins to dissipate. Interestingly, this settlement coincides with changes in the SEC. In April, Paul Atkins, a crypto-supporting candidate appointed by President Donald Trump, became the chairman of the SEC. Since then, the agency has softened its aggressive investigation into the crypto industry. Chairman Atkins actively supports clearer rules that allow innovation in digital finance. He emphasized this shift during a roundtable organized by the SEC's Crypto Group in April. In its statement, the SEC clarified that the settlement does not represent a decision on the merits of the case. Rather, it reflects the agency's new trend toward regulating digital assets. This move indicates a change in the overall approach to how U.S. regulators intend to regulate cryptocurrencies in the future. Speaking of Ripple, the company is eager to put its legal troubles behind. With the change in the legal situation, Ripple now has the potential to develop its business and cryptocurrency-related services. The price of XRP also reacted to the news, increasing by 7%, trading around 2.37 dollars and even briefly reaching 2.42 dollars on Friday. If the court approves this settlement, this case could set a precedent for how future cases of a similar nature might be resolved. It could also encourage other crypto companies with legal issues to seek settled solutions instead of protracted litigation. Overall, the proposed deal between Ripple and the SEC could bring an end to a protracted legal chapter. Above all, it may signal a new era of relations between U.S. regulators and the world of cryptocurrency.
