$XRP Ripple and SEC ink $50 million settlement agreement
Ripple and the SEC filed a joint motion in the US District Court for the Southern District of New York, signaling a settlement. According to the filing, both parties have agreed to settle the lawsuit, with Ripple required to pay $50 million in penalties. Additionally, the SEC and Ripple have requested an indicative ruling to lift the injunction on Ripple and release $125 million in escrowed penalties. Ripple will pay $50 million to the SEC, with the rest returned to the company.
Judge Analisa Torres of the Southern District of New York imposed the $125 million penalty on Ripple for selling XRP to institutional investors, a fraction of the colossal $2 billion fine initially requested by the SEC.
Judge Torres also ruled that Ripple had not violated securities laws by listing XRP on exchanges for investors to buy on the open market. The SEC appealed Torres’ ruling, with Ripple filing a cross-appeal. Both parties agreed to drop their cases, setting the stage for the final end of the lawsuit filed in December 2020.
The settlement comes amid a raft of changes at the SEC, which has significantly scaled down crypto-focused investigations and litigations. President Trump’s nominee, crypto-friendly Paul Atkins, was sworn in as the SEC Chair in April.
Atkins promised to provide a firm regulatory foundation for digital assets, which removes uncertainty while fostering innovation. During the SEC’s Crypto Task Force roundtable in April, the Chair acknowledged that innovation in the crypto industry has been stifled for many years.
XRP’s uptrend gains momentum for a potential breakout
XRP’s price prepares for a major breakout as the uptrend thaws despite the SuperTrend indicator’s sell-side challenges. Flipping this indicator below the price could significantly change market dynamics, indicating a change of guard from the bears to the bulls. A buy signal is confirmed with the SuperTrend indicator shifting below XRP’s price, thus changing the colour from red to green.
