Ripple Set to Receive $75 Million Back from SEC, Withdraws Cross-Appeal
Last August, New York judge Analisa Torres ordered Ripple to pay the regulator a $125 million fine for violating securities laws through institutional sales of XRP.
What You Need to Know
- The SEC and Ripple Labs have reached a tentative settlement agreement that could resolve their prolonged legal dispute.
- The SEC will return $75 million of the $125 million fine, keeping only $50 million to conclude the matter.
The ongoing legal conflict between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is nearing resolution, with Ripple appearing to gain the upper hand. The SEC is expected to return most of the $125 million fine that Ripple paid last year, based on a recent post on X (formerly Twitter) by Ripple’s chief legal officer, Stuart Alderoty.
This proposed settlement, pending approval from both the commissioner and the court, follows the SEC’s decision to drop its appeal against Judge Torres’ ruling that Ripple’s sales of XRP to retail exchanges were compliant with federal securities laws. Torres confirmed that only Ripple’s institutional sales breached these laws, which led to the hefty fine imposed last August.
Under the terms of the proposed settlement, Ripple will also withdraw its cross-appeal against the SEC’s appeal. Alderoty mentioned that the SEC will seek to have the standard injunction against Ripple lifted.
Following this news, the price of XRP saw an increase of 1.5%, settling around $2.47. Despite this rise, it registered a decline of 0.5% over the past day, reflecting the overall trends in the cryptocurrency market.
A representative from the SEC has not yet commented on the matter.
