Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly filed a motion proposing a settlement to resolve their long-running legal dispute concerning the XRP cryptocurrency.
The proposed settlement includes the release of $125 million currently held in escrow. Under the terms, $50 million would be allocated to the SEC, while $75 million would be returned to Ripple.
This lawsuit, initiated by the SEC in 2020, alleged that Ripple conducted unregistered securities offerings by selling XRP tokens valued at approximately $1.3 billion.
Throughout the proceedings, Judge Analisa Torres highlighted the necessity for regulatory frameworks to demonstrate flexibility, aiming to foster innovation while simultaneously upholding compliance standards.
The potential settlement is viewed as a significant development that could alleviate legal uncertainty surrounding XRP, potentially strengthening its position in the cryptocurrency market. It may also establish a precedent influencing future regulatory approaches to digital assets.
Reactions from the cryptocurrency industry express cautious optimism. Many stakeholders perceive the proposed settlement as a constructive step towards resolving regulatory ambiguity and encouraging productive dialogue between innovators and regulators.