- Ripple is close to settling its three-year legal battle with the SEC, as the agency prepares to return $75 million of a $125 million fine.
- A decision on whether the SEC will drop its appeal is expected by April 16, potentially ending one of crypto’s most significant legal disputes.
After three years of intense legal battles, Ripple Labs is on the brink of closing its dispute with the U.S. Securities and Exchange Commission (SEC). According to Ripple executives, the SEC is preparing to return $75 million of the $125 million fine imposed on the company last year. This move could signal the end of a contentious fight over the regulatory status of Ripple’s cryptocurrency, XRP.
The SEC’s decision, which is expected by April 16, will determine whether the commission will drop its appeal following a favorable court ruling for Ripple. Legal experts believe there is a 90% chance the SEC will either settle the case or withdraw its appeal entirely, marking a significant win for Ripple and the broader cryptocurrency industry.
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Ripple’s legal battle began in 2020 when the SEC claimed that the company’s sale of XRP constituted an unregistered securities offering. Ripple has maintained that XRP is not a security, and a recent court ruling supported this stance, declaring that XRP’s sale on exchanges did not meet the criteria of securities. This ruling was seen as a major victory, not only for Ripple but for the entire digital asset industry, potentially setting a new precedent for crypto regulation in the U.S.
The timing of the SEC’s decision is critical. On April 10, the SEC will hold a closed-door meeting, and six days later, Ripple faces its deadline to respond to the appeal. This meeting could be the final step before the SEC announces whether it will settle or continue the legal fight.
Attorney Fred Rispoli, a prominent observer of the case, has suggested that a behind-the-scenes agreement between Ripple and the SEC may have already been reached, although nothing has been confirmed publicly. If the SEC drops its appeal, it would officially end one of the most significant legal battles in the crypto world and provide much-needed clarity for the regulation of digital currencies in the U.S.
The crypto industry is closely watching this high-stakes situation, with Ripple poised to secure a major legal victory by mid-April.