In a pivotal development for the long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), the regulatory agency has officially informed Judge Analisa Torres of the Southern District of New York that a settlement agreement has been finalized with the enterprise blockchain firm.
In a formal letter addressed to Judge Torres, the SEC requested an indicative ruling — a procedural step that signals the district court’s readiness to approve the settlement once the case is remanded from the appellate court. This move follows an earlier decision by the Second Circuit Court of Appeals to pause the ongoing appeal, allowing both parties to focus on closing the settlement process.
One of the most notable outcomes of the agreement is the substantial reduction of Ripple’s financial penalty. Initially set at $125 million, the fine has now been trimmed down to $50 million. The remainder of the previously allocated amount will be returned to Ripple. Beyond the financial terms, the settlement also calls for the dissolution of the injunction originally imposed by Judge Torres as part of her final judgment in August 2024.
Once the case is remanded from the Second Circuit back to the district court, both Ripple and the SEC are expected to voluntarily withdraw their respective appeals, paving the way for the full implementation of the settlement terms. The district court will then determine whether it is willing to dissolve the existing injunction and formally adjust the penalty, contingent on the return of jurisdiction from the Court of Appeals.
This resolution marks a significant moment in the broader debate over cryptocurrency regulation in the United States and could set a precedent for how similar enforcement actions are handled in the future.
Stay tuned for more updates as this landmark case nears its conclusion.
Dіѕсlаіmеr:
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