SEC and Ripple Reach $50 Million Settlement, Seek NY Judge’s Approval

Ripple Labs has made a new agreement with the U.S. Securities and Exchange Commission (SEC) that, pending judicial approval, could conclude their prolonged legal dispute.

In a recent settlement document submitted in New York, both Ripple and the SEC have consented to a $50 million penalty, which is part of the $125 million fine originally set last year by Judge Analisa Torres of the Southern District of New York, a significantly lower amount compared to the SEC’s initial $2 billion demand.

Judge Torres determined in her ruling that Ripple breached securities regulations by selling its XRP token to institutional buyers but maintained that it did not infringe on these laws when listing XRP on exchanges for retail purchasers, addressing a case that began in 2020 under the leadership of former SEC Chair Jay Clayton.

Following the SEC’s appeal against Torres’ decision, Ripple filed a cross-appeal. The newly agreed settlement stipulates that both parties will withdraw their legal actions. This development aligns with Ripple’s earlier announcement from March about reaching a preliminary agreement with the SEC.

The agreement comes as the SEC steps back from several investigations and lawsuits related to cryptocurrencies that were initiated during Gary Gensler’s chairmanship. With a new leadership change at the SEC following a shift in presidential administration, the agency has altered its approach to cryptocurrency regulation.

Upon hearing the news, XRP saw a 9% increase, extending its 24-hour growth.

Ripple has yet to provide a comment regarding this matter.