After More Than Four Years of Legal Battles, Ripple Labs Officially Closes the Chapter on Its Lawsuit with the U.S. Securities and Exchange Commission (SEC)

After more than four years of legal battles, Ripple Labs is officially closing the chapter on its lawsuit with the U.S. Securities and Exchange Commission (SEC).

After more than four years of legal battles, Ripple Labs is officially closing the chapter on its lawsuit with the U.S. Securities and Exchange Commission (SEC).

In what may be the final update on the case, Ripple Chief Legal Officer Stuart Alderoty announced that the company will drop its cross-appeal and secure a $75 million refund from a prior judgment.

Despite the positive development, XRP’s price had yet to jump in the daily chart. At the time of this publication, the price had little change in the daily chart at $2.45, despite an 8% rise in the weekly chart.

Ripple and SEC Drop Appeals, Finalizing Settlement

Ripple’s legal team confirmed that the firm will withdraw its cross-appeal against the SEC in the U.S. Court of Appeals for the Second Circuit. The August 2024 ruling from the Southern District of New York, which found Ripple liable for $125 million, will stand.

However, instead of paying the full amount, the SEC will retain only $50 million in escrow, while Ripple will receive a refund of the remaining balance. The agency will also request the court lift a previously imposed injunction, finally.

"All parties’ agreements are subject to the finalization of documentation, approval by the relevant courts, and an official vote by the SEC Commissioners."

Alderoty added that all agreements are subject to final documentation, court approval, and an official vote by the SEC commissioners. The move follows last week’s announcement from Ripple CEO Brad Garlinghouse that the SEC had decided to drop its appeal over the judgment, signaling a mutual resolution between both parties.

The SEC lawsuit against Ripple, first filed in December 2020, was one of the longest-running enforcement actions against a major U.S. crypto firm. The agency had accused Ripple of raising $1.3 billion through the sale of its XRP token without registering it as a security.

The legal battle reportedly cost Ripple an estimated $150 million in legal fees, but it also set a major precedent for the crypto industry. Ripple emerged as one of the few crypto firms that challenged the SEC’s enforcement approach—and won on key legal questions.

XRP Daily Chart, Source: CoinMarketCap

The implications of this settlement extend beyond Ripple as it underscores broader shifts in political and regulatory landscapes. With the SEC apparently settling with Ripple and withdrawing its appeal, the agency’s approach to crypto regulation seems to be evolving.

Moreover, the Senate Banking Committee is set to consider the nomination of former SEC Commissioner Paul Atkins as the agency's next chair on March 27. Atkins, recognized for his more industry-friendly stance, is expected to be questioned about his regulatory vision and potential conflicts of interest.

As Ripple concludes its legal battle with the SEC, the cryptocurrency industry will be monitoring how regulatory policy develops further under new leadership.

The above is the detailed content of After More Than Four Years of Legal Battles, Ripple Labs Officially Closes the Chapter on Its Lawsuit with the U.S. Securities and Exchange Commission (SEC). For more information, please follow other related articles on the PHP Chinese website!