Jakub Porzycki | nuphoto | Getty Images
Ripple and the U.S. Securities and the U.S. Securities and Exchange Commission have reached an agreement to end the long legal battle over allegations that the company provided unregistered securities. Following last week’s news that the SEC would remove appeals without a condition, Ripple has now agreed to withdraw its cross appeal, Stuart Aldeoty, the company’s chief legal officer, said Tuesday.
The SEC is expected to hold $50 million, a previously imposed $125 million fine. This is funds already held in the escrow account, Aldeoty said. The remaining balance will be returned to Ripple.
Additionally, Aldeoty said the agency would require the court to lift the standard injunction currently in force.
The resolution is subject to formal committee votes, final decisions on legal documents, and standard court proceedings. Once completed, the case will be completely closed.
A spokesman for the SEC declined to comment or confirm details of the transaction.
The agreement marks the end of a closely monitored four-year legal battle that began in December 2020, when the SEC accused the SEC of making unregistered securities offered through the sale of XRP. The case was a key test of how the US securities law applies to digital assets during the tenure of outgoing SEC Chairman Gary Gensler.
That conclusion also illustrates a broader shift in Washington’s approach to crypto regulation.
Since President Donald Trump launched his second term in January, the SEC has reduced its enforcement efforts and dropped civil lawsuits against the exchange Coinbase Signals potential solutions to fraud cases against Kraken and Crypto entrepreneur Justin Sun.
This trend shows a more conciliatory regulatory stance that aims to balance investors’ protection with support for innovation in the digital asset space.
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