Ripple Settles SEC Lawsuit, Agrees to $50M Fine
- Ripple settles its lawsuit with the SEC over XRP.
- Company agrees to a $50 million fine.
- Ripple drops its cross-appeal as part of the deal.
Ripple has reached a settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to pay a $50 million fine while dropping its plans to cross-appeal the ongoing lawsuit against its XRP token.
The resolution of the case suggests a notable shift in regulatory stance, marking a critical juncture for XRP’s legal status and market operations.
Ripple Ends Legal Battle with $50 Million Settlement
Ripple and the SEC have been in a legal battle concerning XRP’s designation as a security. The lawsuit focused on whether XRP should be regulated as a security and its financial implications.
The case, which started in December 2020, targeted Ripple’s sale of XRP, alleging it was unregistered. With this settlement, Ripple resolves a significant legal hurdle.
XRP Trades at $2.45 Amid Settlement News
The settlement potentially reinvigorates Ripple’s market standing and XRP’s use as a key token. The decision could influence regulatory scrutiny in the cryptocurrency sector.
The latest statistics indicate XRP holds a price of $2.45, with a 24-hour trading volume of $2.79 billion and a market cap dominance of 4.95%. XRP’s price decreased by 0.51% in the last day, while increasing 8.60% in the week, as reported by CoinMarketCap.
Experts Warn on Future SEC Actions Post-Settlement
Past cases involving cryptocurrency securities have seen mixed outcomes. Some observers point out SEC crackdowns tend to have lasting effects on crypto asset prices.
Experts suggest future SEC actions may depend on Ripple’s ability to comply with regulatory frameworks. Historical data indicates that clarity in regulations can stabilize token markets.
Stuart Alderoty, Chief Legal Officer at Ripple, said, “The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever…Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple.”
