US Securities and Exchange Commission Officially Reaches Settlement with Ripple and XRP
The case between the US Securities and Exchange Commission and Ripple regarding the cryptocurrency XRP has become one of the most spectacular events in the industry. Now a settlement has been officially confirmed.
Ripple can officially claim victory in the legal dispute with the US Securities and Exchange Commission, which had been ongoing since December 2020. Because over the weekend, the agreement between the parties was officially recorded in the court files in New York. This concludes proceedings that had the entire crypto industry on tenterhooks due to fundamental legal issues.
Agreement Between Ripple and US SEC: XRP Price Soars
Ripple is paying $1.3 billion to the US SEC as part of the settlement. In principle, this sum represents a voluntary payment by Ripple to end the uncertainty in the US market regarding XRP. Previously, a US federal judge had ruled that XRP is not a security under securities law in secondary trading. For Ripple and its customers, the decision means XRP can no longer be considered a security in these contexts.
For the crypto scene, this decision is being celebrated as a massive legal victory, putting a preliminary end to Ripple’s legal saga. Ripple and CEO Brad Garlinghouse attach great importance to the fact that in many other countries beyond the US, XRP has never been considered a security.
Conclusion: Ripple Case Ends with a Positive Signal for the Crypto Industry
Overall, this case could become a milestone regarding legal classification of cryptocurrencies under securities law. From Ripple’s perspective, the financial industry in the US now probably needs clear guidelines to outline the legal status of cryptocurrencies adapted to today’s realities. The SEC, however, is keeping a low profile at the conclusion of the Ripple case with just brief comments.
XRP investors will naturally celebrate the latest developments. Ripple has in any case emerged as the winner, as evidenced by the huge increase in XRP’s value since the court agreed to the settlement.
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