Ripple vs SEC: CLO Releases Bombshell On XRP Case Final Settlement

In a significant development, Stuart Alderoty, Chief Legal Officer of Ripple, announced in a tweet that the U.S. Securities and Exchange Commission (SEC) agreed last week to drop its appeal without conditions.

In response, Ripple has also withdrawn its cross-appeal. This mutual agreement effectively ended the prolonged legal battle between the two parties.

Financial Settlement Details

As part of the settlement, the SEC will retain $50 million of the initially imposed $125 million fine, which had been held in an interest-bearing escrow account. The remaining $75 million will be returned to Ripple.

Additionally, the SEC will request the Court to lift the standard injunction previously imposed at the agency’s request. These actions are pending the Commission’s vote, the drafting of final documents, and standard court procedures.

Background of the Legal Dispute

The SEC filed a lawsuit against Ripple in December 2020, alleging that the company’s sales of its XRP token constituted unregistered securities offerings. In August 2024, U.S. District Judge Analisa Torres ruled that while Ripple’s XRP sales to institutional investors violated securities laws, sales to retail investors through exchanges did not meet the definition of securities.

Consequently, as reported in a previous Times Tabloid article, Ripple was ordered to pay a $125 million fine, significantly less than the $2 billion sought by the SEC. The SEC had filed an appeal against this ruling, which has now been withdrawn as part of the settlement.

Implications for the Cryptocurrency Industry

The resolution of this case is anticipated to have a substantial impact on the cryptocurrency industry, influencing how digital assets are classified and regulated in the United States. The outcome may also affect ongoing and future regulatory actions involving other cryptocurrency entities.

Stuart Alderoty’s announcement marks the end of a significant chapter in Ripple’s history, concluding a legal battle that has spanned over four years. The settlement will bring clarity to Ripple (XRP) and may set a precedent for the broader cryptocurrency industry regarding regulatory compliance and the classification of digital assets.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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