Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are close to concluding their long-running legal dispute. The two parties have reached an agreement involving a $50 million settlement payment. The case, which has spanned nearly four years, centered on whether Ripple’s sale of XRP constituted an unregistered securities offering.
Based on the agreement, Ripple will pay a $50 million civil penalty to the SEC and receive $125 million back from escrow, which will help dissolve a court-imposed injunction and redistribute frozen funds. A joint motion filed by Ripple and the SEC on May 8 and submitted to Judge Analisa Torres in the Southern District of New York reveals that, in exchange, the SEC will drop its remaining claims regarding Ripple’s institutional sales of XRP. While the case isn’t officially over, legal experts believe the procedural path ahead is now clear.
Experts Expect Injunction to Be Lifted as Agreement Moves Toward Final Approval
James Filan, a defense attorney, stated that the next step involves Judge Torres issuing an “indicative ruling” on whether to dissolve the injunction and release the escrowed funds - $50 million to the SEC and the rest to Ripple. If agreed, both parties will file a joint motion with the U.S. Court of Appeals to remand the case back to Judge Torres for final relief. Following this, they will request the lifting of the injunction and distribution of funds, after which both parties will dismiss their appeals, closing the case.
Reacting to the latest updates, John Deaton, a former U.S. Senate candidate, said it would be shocking if Judge Torres did not agree to lift the injunction, given the mutual agreement between the parties. He noted that the settlement is perfect and that it will be difficult for the court to refuse moving forward with the agreement. He stated:
It would be absolutely shocking for Judge Torres to not agree to lift the injunction under these circumstances. I don’t want to jinx anything but the below agreement makes perfect sense and it’s difficult to see it not going through.
