Ripple-SEC Settlement: XRP to Pay $50M Fine?
Ripple Labs' protracted legal dispute with the U.S. Securities and Exchange Commission (SEC) appears to be concluding. A significant development in ongoing settlement negotiations suggests Ripple may pay its reduced $50 million penalty using its native token, XRP.
Ripple's XRP Settlement Proposal
During an April 11th FOX Business interview, Ripple CEO Brad Garlinghouse revealed that using XRP to settle the penalty was discussed. He stated, "The SEC is going to end up with $50 million and the US government gets $50 million and we talked about making that available in XRP."
This follows Ripple and the SEC dropping their appeals, bringing the years-long legal battle closer to resolution. Garlinghouse added on X (formerly Twitter): "We’re moving past the SEC’s war on crypto and entering the next phase of the market – true institutional flows integrating with decentralized finance."
Settlement Details and Implications
Initially, Judge Analisa Torres set the fine at $125 million in 2024, related to Ripple's unregistered XRP sales. With appeals dropped, the reduced $50 million fine is expected. A joint court filing confirms a preliminary agreement, pending final SEC commissioner approval and a district court ruling.
If approved, this would conclude a major regulatory battle in the crypto industry. Paying the fine in XRP could significantly alter the SEC's approach to digital assets, potentially sparking bullish XRP price action. Since November 2024, investor confidence in XRP has risen sharply, with its value increasing by over 300%, partly attributed to the friendlier political climate and potential XRP reclassification as a commodity.
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Disclaimer: This information is for educational purposes only and is not financial advice. Always conduct thorough research and consult with a financial professional before making any investment decisions. The information presented here reflects the current understanding of the situation and is subject to change.