The battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is nearing its end, after the agency informed the Court of Appeal that it has reached a settlement agreement with the company, awaiting the final ruling.
According to the status report submitted on August 15, the parties agreed to drop their legal appeals and bear their own costs, effectively paving the way for the conclusion of a legal dispute that has lasted nearly five years.
However, this settlement will only come into effect after the Court of Appeal issues its official approval. Until that happens, the case will remain procedurally ongoing. Observers see this step as routine in the context of closing the file.
XRP-supporting attorney Bill Morgan clarified that Judge Analisa Torres could issue the final order at any time, which would close this historic dispute.
The case dates back to December 2020 when the SEC filed a lawsuit against Ripple, accusing the company of raising $1.3 billion through the sale of XRP without registering it as securities. In July 2023, Judge Torres issued a ruling stating that sales of XRP to individuals do not constitute securities, while sales to institutional investors are subject to securities laws.
Analysts and investors in the cryptocurrency market consider the settlement a pivotal step, which could open the door to clearer rules on how U.S. law interacts with other digital assets. The anticipated decision is also expected to facilitate the entry of financial institutions, including banks and investment funds, into the XRP market, thereby enhancing its broader adoption.
While the industry awaits the final ruling, many believe that this settlement could mark a turning point in the relationship between digital assets and U.S. legislation.
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