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- Ripple to pay $125 million in civil penalties after reaching a court-submitted settlement with the SEC.
- Judge Torres expected to decide on lifting the injunction to release $75 million in Ripple’s escrowed funds.
- SEC Commissioner Crenshaw criticizes the deal, warning it weakens crypto enforcement and investor protections.
Ripple Labs has won a major legal battle after striking a deal with the U.S. Securities and Exchange Commission (SEC). The agreement marks a major turning point in the enduring legal struggle that started in 2020.
A board member named James K. Filan, the attorney, stated that both parties laid the deal before the court seeking approval. Ripple will pay $125 million in civil penalty as well as refund $25 million from its locked escrow funds. Further, $50m from the escrow will also be paid to the SEC in the resolution.
Judge Analisa Torres will now have to rule on whether to vacate the standing injunction preventing Ripple’s escrow access. This is imperative for the fund transfer to proceed as planned.
After court approval, Ripple and the SEC will petition the appeals court to remand the case. They also intend to close all the pending appeals, i.e., finally put one of the most discussed lawsuits, in the cryptocurrencies, to rest officially.
The legal battle accused Ripple of selling XRP to institutional investors without registration. While the court determined that Ripple violated some securities laws, the final settlement terms are seen as favorable to the company.
Settlement Sparks Internal Clash Within the SEC
Though this case is going to close soon, not all the voices in the SEC are pleased. Commissioner Caroline Crenshaw expressed in public dissent that this deal is a “regulatory retreat” that sends the wrong message to the market.
Crenshaw disapproved of the lower penalty and Ripple’s validity to sell XRP. She warned of a weakening of enforcement authority and a public loss of faith in the agency.
She describes an internal disagreement on how the SEC should handle crypto violations. The dissent also outlines increasing pressure on the Commission to take a stronger stance on digital assets.
This development is being keenly watched in the crypto industry. Market players are reading the agreement as a sign that Ripple has emerged from the suit with only minor long-term constraints.
Ripple’s settlement with the SEC is a spectacular legal and strategic win for the company. With slimmer penalties and partial fund recovery, Ripple sets itself up for a comeback in the XRP market as regulators encounter questions about future crypto enforcement.
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