Ripple Labs, a U.S.-based blockchain-based payment company, has settled and officially ended its long legal battle with the U.S. Securities and Exchange Commission (SEC) by agreeing to pay a $50 million fine. The company will also drop its appeal against previous rulings in the case, ending a four-year-old dispute.
The SEC sued Ripple in 2020 for the illegal sale of XRP. Years later, a court ruled that XRP was not a security for ordinary buyers but stated that certain institutional sales violated the law, leaving Ripple facing an unresolved legal challenge.
Rather than continuing the fight, Ripple has now opted to conclude the case by withdrawing its appeal. The settlement clarifies XRP investors and businesses that depend on the firm’s technologies.
SEC’s Ruling and Ripple’s Response
Remarkably, before Ripple’s recent decisions, the SEC took a step toward peace with the crypto firm by withdrawing the long-term lawsuit, boosting investors’ confidence in the firm’s native cryptocurrency, XRP.
According to Stuart Alderoty, Ripple’s Chief Legal Officer, the SEC will retain $50 million, while Ripple will recover the remaining $75 million from the initial $125 million fine previously imposed.
The agency will also request that Judge Analisa Torres lift a legal order requiring Ripple to follow securities laws, a standard restriction imposed after the agency’s lawsuit.
Market Reaction and SEC’s Crypto Stance
Following the recent development, XRP’s price could surge, signaling rekindled investor interest and confidence. Many could be watching closely to see how this decision impacts future regulations and crypto businesses. As of the time of writing, Ripple’s XRP trades at $2,442, representing a 0.43% upward move over the past hour.
This settlement follows recent SEC actions indicating a more lenient approach to crypto regulation. The agency has also reduced pressure on other firms following President Donald Trump’s appointment of a crypto-friendly SEC Chairman.
Meanwhile, as part of its strategy towards crypto regulations, the SEC has chosen not to pursue legal action against Web3 gaming company Immutable. After receiving a Wells notice, an official warning from the SEC regarding a potential enforcement action, the agency has concluded the investigation without initiating legal action.
