After more than four years of legal drama, Ripple and the SEC have finally called a truce—and it’s a big win for the crypto company. On May 8, both sides agreed to a $50 million settlement, a major reduction from the original $125 million fine Ripple faced.
The deal also unlocks $75 million in escrowed funds that Ripple can now reclaim. This marks the official end of a legal standoff that started back in December 2020, when the SEC accused Ripple and its top execs of selling $1.3 billion in unregistered securities via XRP.
A key moment came in mid-2023, when a judge ruled that XRP wasn’t a security in retail transactions, although it did qualify as one in institutional sales, leading to the fine Ripple just negotiated down.
Both Ripple and the SEC have now dropped their appeals, and all that’s left is a green light from Judge Analisa Torres to finalize the deal. Once that happens, the long shadow of this case over Ripple—and arguably over much of the U.S. crypto space—will be lifted.
Markets took notice. XRP popped 5.2% in 24 hours, reaching $2.29, and the coin is up a staggering 340% over the past year. The crypto community, especially XRP holders, took a well-earned victory lap. As attorney John Deaton put it simply, X: “It’s over.”
A landmark case in crypto regulation may have just closed its final chapter.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
