tl;dr
The SEC and Ripple Labs have reached a settlement in their legal dispute, with Ripple agreeing to pay a $125 million civil penalty, much lower than the SEC's initial $2 billion demand. Ripple disclosed that the SEC will ask the court to vacate a prior injunction against Ripple, signaling progress in...
The Securities and Exchange Commission (SEC) and Ripple Labs have reached a landmark settlement in their protracted legal battle, with Ripple agreeing to pay a civil penalty of $125 million — a fraction of the initial $2 billion sought by the SEC.
In a joint move, the SEC will ask the court to vacate the injunction previously barring Ripple from future securities law violations, signaling notable progress in the case and a broader shift in U.S. cryptocurrency regulation.
This legal breakthrough was announced publicly by defense attorney James K. Filan, who has been closely monitoring the case. The settlement awaits final court approval but represents a major win for Ripple.
Following the news, XRP — Ripple’s native token — surged 6.45% in price accompanied by a doubling in trading volume, reflecting renewed investor confidence amid a broader crypto market recovery. This bullish trend coincided with the Federal Reserve’s decision to keep interest rates steady at 4.25%-4.5%, stabilizing market sentiment.
The settlement marks a pivotal moment for the crypto industry, illustrating evolving regulatory dynamics and potentially paving the way for XRP to shed its long-held “security” label, which Ripple has consistently contested.
As the dust settles on this litigation chapter, market watchers are keenly observing whether XRP can sustain its price rally and capitalize on the positive regulatory momentum.
Key Takeaways:
- Ripple pays $125 million civil penalty, far less than SEC’s initial $2 billion demand.
- SEC agrees to request vacating the prior injunction against Ripple.
- XRP’s price jumps 6.45% amid rising trading volume.
- Federal Reserve’s steady interest rate decision supports market rebound.
- Settlement signals potential easing of U.S. crypto regulatory tensions.