Ripple Labs Settles with SEC, Ending Legal Dispute Over XRP

According to ShibDaily, Ripple Labs has reached a settlement with the U.S. Securities and Exchange Commission (SEC), concluding a lengthy legal battle that has been closely monitored by the cryptocurrency industry. As part of the settlement, Ripple will pay a $50 million penalty and withdraw its cross-appeal. This resolution is significant in the ongoing regulatory discussions surrounding digital assets. Ripple's Chief Legal Officer, Stuart Alderoty, announced the settlement on social media, marking the end of the legal dispute. The SEC will retain $50 million of the original $125 million penalty, with the remainder returned to Ripple. Alderoty noted that the SEC has agreed to drop its appeal without conditions, and Ripple has reciprocated by dropping its cross-appeal. The agency will also request the court to lift the standard injunction previously imposed at the SEC's request, pending a Commission vote and the drafting of final documents. Ripple CEO Brad Garlinghouse confirmed the SEC's decision to drop its appeal, describing it as a significant victory for Ripple and the broader cryptocurrency sector. The legal battle began in December 2020 when the SEC accused Ripple of conducting an unregistered securities offering through the sale of its XRP token. Ripple countered these claims, arguing that XRP should not be classified as a security and criticizing the SEC's regulatory approach as lacking clarity. Throughout the case, both parties achieved partial victories. In a notable ruling in July 2023, a federal judge determined that XRP was not a security when sold on exchanges to retail investors, although institutional sales of the token did violate securities laws. This decision was viewed as a win for Ripple and the crypto industry, supporting the argument that certain digital assets should not be subject to traditional securities regulations. The settlement with the SEC is expected to have lasting implications for how regulators approach digital assets, potentially shaping the legal framework for cryptocurrencies in the United States.