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- The SEC and Ripple have mutually dropped their appeals, signaling the final phase of their long-standing legal battle.
- Under the settlement, the SEC will retain $50 million of the initial $125 million fine, refunding the remaining $75 million to Ripple.
- The agreement awaits final SEC Commission approval, with legal closure expected within 60 days.
The United States Securities and Exchange Commission (SEC) and Ripple Labs are in their final chapter. In a dramatic twist last week, the SEC agreed to drop its appeal unconditionally, and Ripple also dropped its cross-appeal. The joint action is a huge step towards the conclusion of a case that has gone on for years, impacting Ripple, XRP holders, and the whole crypto market.
The SEC will keep $50 million of the initial $125 million fine under the settlement terms. It now holds the amount in an interest-bearing escrow account. The remaining $75 million will go back to Ripple. The SEC has also committed to requesting the court to lift the standard injunction ordered earlier in the case.
Before they can seal the deal, they need to submit it to a series of formalities. These include a commission vote, final legal document drafting, and routine court procedures. They expect to accomplish all these in the next few weeks.
Attorney Fred Rispoli commented on the ruling, with ambivalence. He noted the vast volume of work SEC lawyers do, the endless hours they put in, and the sacrifices they make, only to see their case abruptly dismissed. Rispoli stated that it was as if their diligent work was “erased in a moment.
On the contrary, Ripple supporters and the XRP community believe that the real victims of this long legal fight were the XRP holders and the Ripple team. Both parties lost money and had to live with years of uncertainty because of the lawsuit.
Ripple awaits SEC vote for case closure
Providing an updated timeline, Rispoli revealed that the necessary legal documentation is already finished. The SEC Commission will vote in the next 30 days. Following this, the SEC will file for the lifting of the injunction, and Ripple will not oppose the motion. Once signed off by the judge, they will officially close the case, which can be in 60 days.
Rispoli mentioned, “We are, at most, 60 days from this being fully and officially concluded, in a legally decisive and impressive manner.”
Furthermore, for Ripple and XRP holders, this settlement can be a game-changer. The lawsuit has cast a cloud over XRP’s regulatory status for years, creating price volatility and market uncertainty. A final legal resolution may not only bring much-needed clarity for XRP but can also potentially set a precedent for how regulators treat other cryptocurrencies going forward.
As the crypto sector anticipates the ultimate decision, this case stands as a pivotal moment in the ongoing clash between regulators and blockchain-driven businesses
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