The U.S. Securities and Exchange Commission (SEC) has officially filed a request with Judge Analisa Torres for approval of a proposed settlement with Ripple Labs, marking a potential resolution to the ongoing legal battle over the regulatory status and initial sale of XRP.
The filing outlines the terms for ending the SEC’s civil enforcement action against Ripple Labs, Inc. and its executives, Christian A. Larsen and Bradley Garlinghouse. The agreement seeks the dissolution of the injunction established in the previous Final Judgment and requests the release of the $125 million escrow account initially set aside as a civil penalty for Ripple.
As part of the proposed settlement, Ripple would pay $50 million to the SEC to fully fulfill the penalty, with the remaining funds to be returned to Ripple. If Judge Torres approves the terms, both parties plan to petition the U.S. Court of Appeals for the Second Circuit to send the case back to the district court to finalize the agreement.
Approval of the settlement would likely bring an end to the appeals process and close one of the most high-profile enforcement actions in the cryptocurrency sector. The outcome could also have significant implications for the future regulation of digital assets in the United States.
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