Ripple and SEC reach major agreement: remaining $75 million fine, ban lifted

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Ripple and SEC reach major agreement: remaining million fine, ban lifted

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At a major turning point in Ripple Labs, blockchain payments companies have been in a legal battle over the classification of their related token XRP, which has reached a settlement with the U.S. Securities and Exchange Commission (SEC).

SEC settlement provides clarity for corrugation

According to the agency announcement On Thursday afternoon, the settlement involved Ripple Labs, CEO Brad Garlinghouse and Executive Chairman Christian A. Larsen.

The SEC’s application outlines the framework for addressing its civil enforcement actions against the defendants, providing clear and potential relief for Ripple to seek to move forward.

The details of the solution emphasize that regulators and the Corrugated Lab will jointly request the District Court to issue an indicative ruling to determine whether the injunction imposed by blockchain payment companies will be dissolved.

The ban stems from a final judgment issued on August 7, 2024, which includes a civil fine of $125 million. Under the terms of the agreement, Ripple will pay $50 million to the committee to meet a portion of the penalty, while the remaining funds will be returned to Ripple.

The next overview of both parties

According to the agency, the settlement is dependent on the district court, saying it will agree to dissolve the injunction and release the custody fine.

Once this sign is received, both parties will seek limited custody to the District Court for the necessary relief. After that, they plan to dismiss their respective appeals that are currently pending for the Second Circuit Court of Appeals.

The decision to resolve the SEC does not mean an assessment of the merits of the claims against ripple, but is based on a judgment that resolution enforcement actions will help the Commission reform and update its approach to regulatory oversight of the cryptocurrency sector.

At the time of writing, XRP traded at $2.30, up 7% over the 24-hour timeframe.

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