Ripple Labs Drops Appeal Against the SEC and Agrees to Pay $50 Million Settlement

Ripple has decided to drop its appeal against the SEC and settle the case. The company will pay $50 million out of the originally ordered $125 million fine.

The U.S. Securities and Exchange Commission (SEC) has agreed to drop its appeal and close the case with a $50 million settlement, part of the originally ordered $125 million fine, to settle the case with Ripple.

The agency will also apply to Judge Torres to remove the ongoing injunction, a move that marks a crucial step in resolving the legal battle.

“The SEC is planning to apply to Judge Torres to vacate the injunction. The SEC also intends to finalize its vote and court filings, which will formally conclude the case,” a Fox reporter, Eleanor Terrett, announced via X social media.

“After the SEC completes these final steps, the case will be fully closed,” she added.

Earlier, Terrett announced that Ripple had decided to cease its appeal and contribute $50 million to settle the case. The SEC intends to remove the current injunction, as stated by Terrett. Once all legal procedures are finished, the case will permanently terminate.

Moreover, Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the news. He announced via X that the SEC accepted to drop its appeal fully and unconditionally last week. As part of its agreement with the SEC, Ripple decided to withdraw its counter-appeal.

“The $50M+ in cash, held in an interest-bearing escrow account, will remain with the SEC. All other funds will be returned to Ripple,” said Alderoty.

He added that the SEC plans to apply to the court to remove the earlier placed injunction. The SEC’s final vote and legal paperwork are still needed to complete this process.

XRP maintains its place among the most prominent cryptocurrencies operating in the market. According to CoinMarketCap, XRP occupies the position of the fourth-largest cryptocurrency based on market capitalization, trailing Bitcoin and Ethereum and Tether.

Despite predictions from investors that XRP would experience an appreciation in value following the legal victory, the cryptocurrency has not yet seen any increase in price.

The Office of the SEC has dismissed several crypto-related legal suits since Donald Trump resumed his presidential duties. Recently, the agency decided to cease its lawsuits against Coinbase and Kraken.

The SEC also announced its willingness to settle a civil fraud case against Chinese entrepreneur Justin Sun, who was involved in a crypto project backed by Trump.

The new role of SEC chairman goes to lawyer Paul Atkins, part of Trump’s appointments. Atkins is known for defending crypto businesses in his legal practice. His formal appearance in the Senate is scheduled for Thursday of this week. During his time at the SEC, he aims to make significant changes to crypto law.

Although Ripple won the legal battle, XRP did not experience any subsequent price gains. Currently, XRP is trading at $2.43, showing a minor 1% decline. However, the token is displaying strong momentum as it approaches the $2.45 level, and its trading volume has risen by 16% to reach $3.04 billion.

The future price movements of XRP remain uncertain following this development.