Ripple Labs has reached a significant settlement with the U.S. Securities and Exchange Commission (SEC) regarding their ongoing legal battle. If a judge approves the agreement, it will officially conclude the years of litigation. The settlement proposes a $50 million penalty, part of a previously imposed $125 million fine by District Judge Analisa Torres, following findings that Ripple had wrongfully sold its XRP token to institutional investors. Previously, the SEC sought even more—up to $2 billion in penalties.

In March of this year, Ripple first unveiled the in-principle agreement with the SEC.

Under the stipulated settlement, both parties have decided to drop existing litigation, confirming Ripple’s earlier announcement of a potential resolution. Meanwhile, the regulatory landscape appears to be shifting with new leadership at the SEC following some notable appointments.

As a notable response to the announcement, XRP’s value surged 9% within a short span, showcasing optimism in the market. Ripple’s representatives have yet to comment on the settlement specifics.