Ripple and SEC Reach Surprise $50M Settlement – What Comes Next?

Ripple and SEC Push for Closure – $125M in Escrow at Stake

Ripple and SEC – In a surprising move, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs have jointly filed a motion requesting an indicative ruling from Judge Analisa Torres to enforce their recently reached settlement agreement. The filing was submitted yesterday in a New York federal court, marking a pivotal moment in the long-running legal battle between the regulator and the blockchain firm.

Settlement Slashes Penalty by 60%

According to court documents, the SEC has officially approved a revised settlement with Ripple and its top executives, Chris Larsen and Brad Garlinghouse. The deal reduces Ripple’s financial penalty from $125 million to $50 million and seeks to vacate the permanent injunction that had barred Ripple from certain XRP sales.

The SEC’s approval followed a closed-door meeting and ended a month-long delay in finalizing the terms. The motion also requests the court to release the $125 million currently held in escrow, allocating $50 million to the SEC and returning the remaining $75 million to Ripple.

Path to Legal Closure

The next steps depend on whether Judge Torres grants the indicative ruling. If approved, the parties plan to request a limited remand from the Second Circuit Court of Appeals, temporarily giving Torres jurisdiction to execute the settlement terms.

Once executed, both sides would ask the appellate court to dismiss their ongoing appeal and cross-appeal, potentially bringing an end to the multi-year lawsuit.

XRP Community Optimistic

Well-known pro-XRP lawyer John Deaton expressed optimism, calling the agreement “perfectly sensible” and likely to be approved. The final decision now rests with Judge Torres, as the broader XRP community closely watches for a resolution.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.