Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have officially reached a deal that, if approved by a judge, will bring their years-long legal battle to a close.
According to a settlement agreement filed in New York on Thursday, both parties have agreed to a $50 million penalty—a portion of the $125 million fine initially imposed last year by Judge Analisa Torres of the Southern District of New York (SDNY), and a tiny fraction of the massive $2 billion fine initially requested by the SEC.
In her 2023 ruling, Judge Torres found that Ripple violated securities laws in selling its native XRP token to institutional investors but did not violate securities laws in putting XRP on exchanges for retail customers to buy in a suit originally brought in 2020 under then-SEC Chair Jay Clayton, who is now the Acting U.S. Attorney for the Southern District of New York.
The SEC, under the leadership of former Chair Gary Gensler, appealed Torres’ ruling, prompting Ripple to cross-appeal. However, under the settlement agreement, both parties have agreed to drop their respective cases. The Thursday filing confirms Ripple’s earlier announcement in March that it had reached an in-principle settlement agreement with the SEC.
Read more: Ripple to Get $75M Of Court-Ordered Fine Back from SEC, Drops Cross Appeal
This settlement comes at a time when the SEC is experiencing a significant shift in its approach to cryptocurrency regulation. Following the appointment of crypto-friendly Paul Atkins as the new SEC chairman, the agency has begun to retreat from a series of investigations and litigation efforts initiated during Gensler’s tenure.
XRP’s value has responded positively to the news, witnessing a 9% increase and building on a 24-hour trend of rising prices.
Despite the settlement, Ripple did not respond to inquiries from CoinDesk for further comments.
