The Sec vs Ripple case is closing down in a dramatic way. As per the recent updates Ripple has dropped its cross-appeal against the SEC after the agency decided to withdraw its case against the crypto firm last week.
In a recent post on X, Ripple’s Chief Legal Officer, Stuart Alderoty, announced that the company has agreed to drop its cross-appeal.
Stuart Alderoty said Ripple Drop Cross-Appeal, Source: X
Under the settlement, the SEC will retain $50 million out of the $125 million penalty levied against Ripple. The amount was already being kept in an interest-bearing escrow account.
The other $75 million will be refunded to Ripple. The SEC will also request the court lift a previous injunction against Ripple. However, the process is still pending final legal processes, such as a proper vote by the SEC and confirmation from the court.
This settlement marks the end of a court battle that started in December 2020 when the SEC charged Ripple with operating an unregistered securities offering through XRP sales. The case was regarded as a significant test of the application of U.S. securities laws to digital assets.
The conclusion of the case also indicates a change in the SEC’s strategy for regulating cryptocurrency. Ever since President Donald Trump began his second term in January, the SEC has relaxed its enforcement efforts.
The agency has dropped lawsuits against major crypto exchanges like Coinbase and Kraken and may also settle its fraud case against crypto entrepreneur Justin Sun.
