Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly proposed a settlement agreement valued at $125 million to resolve their long-standing legal dispute.
The proposed terms include a $50 million civil penalty payable to the SEC and $75 million to be returned to Ripple. This agreement aims to conclude years of litigation concerning the regulatory classification of XRP.
Judge Analisa Torres, overseeing the case, noted the settlement reflects ‘exceptional legal and regulatory developments,’ indicating a pragmatic resolution to the complex dispute. The resolution is anticipated to provide much-needed clarity on XRP’s regulatory status, which has previously hindered its market performance.
Industry observers suggest the settlement could establish a significant precedent for future regulatory frameworks governing cryptocurrencies. It may also encourage other firms engaged in regulatory disputes to pursue negotiated resolutions.
Market participants anticipate that resolving the litigation could enhance XRP’s legitimacy, foster greater adoption, and bolster investor confidence in the digital asset.