The Ripple Labs and the US Securities and Exchange Commission (SEC) have officially reached a deal that, if approved by a judge, will take their year of legal battle.
According to a negotiation agreement filed in New York on Thursday, both parties filed a $ 50 million penalty -a portion of the $ 125 million fine first imposed last year by Judge Analy Torres of the Southern District of New York (SDNY), and a small part of the massive $ 2 billion of the Sec.
In his 2023 decision, Judge Torres found that Ripple violated the security laws of the native XRP token to institutional investors, but did not violate the security laws of the XRP in retailing retail exchanges to buy in a suit that originally brought 2020 under the Jay Jay Clayton in the Southern District of New York).
The SEC, then under the leadership of former chair Gary Gensler, appealed to Torres’ decision, prompting Ripple to cross-appeal. Under the negotiation agreement, both parties agree to overthrow their cases. The Thursday’s filing confirmed Ripple’s announcement in March that it reached an in-principle settlement agreement with the Sec.
Read more: Ripple to get $ 75m ordered by the court from the SEC, Drops Cross Appeal
The settlement came in the middle of the SEC’s full-scale retret from a host of crypto investigations and litigation that began under Gensler’s tenure. After US president Donald Trump received the office in January and Crypto-friendly Paul Atkins’s crypto-friendly To serve as the new SEC chairman, the agency has created a face in crypto regulation.
XRP climbed 9% in the news, which continues a 24 -hour increase in value.
Ripple did not respond to CoinDesk’s request for comment.
