After years of legal battles, Ripple and the SEC make a new attempt at settlement. They have jointly submitted a proposal to finally resolve their dispute. What are the key terms of this agreement and how could it impact the XRP market?
After years of litigation, the conflict between Ripple and the SEC seems to be reaching a new decisive breakthrough. According to information from journalist Eleanor Terrett, both parties have jointly requested the court to approve a settlement agreement.
In their joint request, Ripple and the SEC propose to finally split the $125 million fine previously imposed, which was held in escrow until now. Thus, $50 million would go to the SEC, while the remaining $75 million would be refunded to Ripple.
This agreement, filed with the Southern District Court of New York under the supervision of Judge Analisa Torres, aims to avoid further legal proceedings and a potential appeal. Both parties hope to permanently close this longstanding dispute.
For many investors, the Ripple-SEC case was already largely resolved. The central question of whether XRP should be considered a financial security had been settled several months ago. The focus now was primarily on negotiating the amount of the fine.
Nevertheless, the news of a formal agreement is well-received by investors. They hope that this resolution will finally put an end to persistent legal uncertainties. Moreover, the fine for Ripple is relatively light, with $75 million refunded that can be reinvested in innovation and international expansion of the payment network. This could boost XRP demand in the long run.
According to analysts, an official agreement will further strengthen confidence in Ripple. It could also set an example for other crypto companies on how to collaborate with regulatory authorities like the SEC.
However, it remains to be seen if the court will approve this new proposed settlement. Previously in May, Judge Analisa Torres rejected a similar proposal. But according to Eleanor Terrett, circumstances have significantly changed since then.
The joint submission by both parties, the prospects of a substantial agreement, and indications that the SEC would reconsider its crypto policy could lead to a different decision. Approval of this agreement could then mark a significant step for future regulations in the US cryptocurrency sector.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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