SEC Reaches Settlement Agreement with Ripple in Landmark Case
In a significant development, the U.S. Securities and Exchange Commission (SEC) has officially confirmed that a settlement agreement has been reached with Ripple, the enterprise blockchain company. This confirmation comes in the form of a new letter addressed to Analisa Torres, a United States District Court Judge for the Southern District of New York (SDNY).
Indicative Ruling Requested
The letter to Judge Torres also includes a request for an indicative ruling, marking a crucial step forward in the legal process. With the Second Circuit having previously paused the appeal to allow for the settlement process to be finalized, the district court now awaits the remand of the case for formal approval of the settlement.
Reduction in Penalty
One of the key aspects of the settlement agreement is the reduction of Ripple’s penalty from $125 million to $50 million. The remaining sum is set to be returned to the company, signaling a favorable outcome for Ripple in this legal battle. Additionally, the injunction imposed by Judge Torres in the final judgment last August is expected to be lifted as part of the agreement.
Resolution of Summary Judgment Order
As part of the settlement terms, both Ripple and the SEC have agreed not to seek modification of Judge Torres’s summary judgment order from July 2023. This order clarified that programmatic XRP sales were not considered securities, while institutional XRP sales were found to violate securities laws. This agreement brings a degree of closure to the legal disputes surrounding Ripple’s XRP sales.
Market Response
Following the news of the settlement agreement, XRP has seen a 7.2% increase in value over the past 24 hours, according to data from CoinGecko. This positive market response reflects the optimism surrounding Ripple’s resolution of this high-profile case.
Overall, the settlement agreement between Ripple and the SEC marks a significant milestone in the ongoing legal saga, with both parties poised to move forward from this chapter once the district court formally approves the terms of the agreement.