$XRP The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) appears to be drawing to a close. Here's the latest as of Saturday, May 10, 2025:
Settlement Agreement Reached:
* The SEC and Ripple have reached a settlement agreement.
* Ripple will pay a $50 million penalty to the SEC. This is significantly less than the $125 million penalty initially imposed by Judge Analisa Torres. The SEC had originally sought a $2 billion penalty.
* The remaining funds from the $125 million civil penalty held in escrow will be returned to Ripple.
Joint Motion for Court Approval:
* Both Ripple and the SEC have jointly filed a motion in the U.S. District Court for the Southern District of New York, seeking court approval for the settlement.
* They have also requested an "indicative ruling" from Judge Torres to dissolve the injunction against Ripple and release the escrowed penalties.
End of Appeals:
* As part of the settlement, both Ripple and the SEC have agreed to drop their respective appeals related to previous rulings in the case.
Key Aspects of the Settlement:
* The settlement preserves the court's July 2023 summary judgment, which stated that Ripple's institutional sales of XRP violated securities laws, while its programmatic and secondary market sales did not. Neither party will challenge this ruling.
* The SEC stated that this settlement reflects its ongoing efforts to reform its regulatory approach to the crypto industry, rather than an assessment of the merits of the claims in this specific case.
* Commissioner Caroline A. Crenshaw of the SEC has expressed her dissent against the settlement, arguing that it undermines the court's authority and sends a wrong message to the crypto sector.
Next Steps:
* Judge Analisa Torres needs to issue an indicative ruling on whether she will dissolve the injunction and approve the release of the escrowed funds according to the settlement terms.
* If the indicative ruling is favorable, both parties will then file a joint motion with the Second Circuit Court of Appeals for a limited remand to the district court for final approval of the settlement.
Market Impact:
* The price of XRP has shown a positive reaction to the news of the settlement.
In summary, after a protracted legal battle that began in December 2020, Ripple and the SEC have agreed to a settlement. This agreement involves Ripple paying a $50 million penalty, the return of the remaining escrowed funds to Ripple, and the dropping of all appeals. The finalization of this settlement is now pending court approval.
