Ripple and the U.S. Securities and Exchange Commission (SEC) have concluded their nearly five-year legal dispute with a joint court filing that requests a release of $125 million from escrow funds. This settlement is part of a resolution to the lawsuit that began when the SEC accused Ripple of raising $1.3 billion through unregistered XRP sales.
The agreement specifies that the SEC will receive $50 million as a civil penalty, while Ripple will get $75 million, pending court approval. This move is intended to prevent further appeals, effectively bringing the lengthy litigation to an end.
Notably, this decision follows a pivotal ruling from Judge Analisa Torres in 2023, which clarified that XRP is not classified as a security in secondary markets. While some early XRP sales to institutional investors were deemed securities, the broader acknowledgment of XRP's legal status has positively impacted the cryptocurrency.
Ripple CEO Brad Garlinghouse termed the SEC's decision to drop its appeal as a milestone for the entire industry, signifying a step forward in regulatory clarity. In the wake of these developments, XRP's price has risen to approximately $2.16, with resistance levels projected around $2.35 and $2.60.
The agreement specifies that the SEC will receive $50 million as a civil penalty, while Ripple will get $75 million, pending court approval. This move is intended to prevent further appeals, effectively bringing the lengthy litigation to an end.
Notably, this decision follows a pivotal ruling from Judge Analisa Torres in 2023, which clarified that XRP is not classified as a security in secondary markets. While some early XRP sales to institutional investors were deemed securities, the broader acknowledgment of XRP's legal status has positively impacted the cryptocurrency.
Ripple CEO Brad Garlinghouse termed the SEC's decision to drop its appeal as a milestone for the entire industry, signifying a step forward in regulatory clarity. In the wake of these developments, XRP's price has risen to approximately $2.16, with resistance levels projected around $2.35 and $2.60.
