Why Is XRP Going Up? SEC Confirms Ripple Lawsuit End with a $50M Settlement

By: finance magnates|2025/05/09 15:00:08
0
Share
copy
The long-running legal dispute between Ripple and the Securities and Exchange Commission (SEC) is finally over. The regulator confirmed yesterday (Thursday) that both parties have agreed to a settlement, which involves a $50 million penalty paid by the blockchain company. XRP Reacts Fast XRP also reacted quickly to the regulatory confirmation. The cryptocurrency jumped about 6 per cent in the last 24 hours, taking the 7-day return to almost 4 per cent. The latest settlement amount is only a portion of the $125 million initial penalty imposed on Ripple last year by Judge Analisa Torres of the Southern District of New York (SDNY). At that time, the SEC requested a $2 billion penalty against Ripple. The regulator alleged that Ripple raised over $1.3 billion by selling XRP tokens in an unregistered securities offering, violating federal securities laws. However, the Judge found that Ripple's direct sales of XRP to institutional clients violated federal securities laws, but the programmatic sales of XRP to retail clients through exchanges did not constitute a violation. After the earlier court order, both parties appealed: Ripple asked for the penalty to be dismissed, while the SEC sought a higher amount. $50 Million, Down from $2 Billion The regulator also highlighted that it would return over $75 million currently being held in escrow to Ripple. “This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement programme, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws,” noted SEC Commissioner Caroline Crenshaw in the official announcement. The settlement has been officially announced weeks after Paul Atkins took over as the SEC Chair . Atkins is viewed as a crypto-friendly individual, unlike his predecessor, Gary Gensler. However, Ripple’s CEO, Brad Garlinghouse, confirmed the end of the SEC battle in mid-March . This suggests that the settlement was confirmed when Mark Uyeda headed the regulatory agency in an acting capacity. Uyeda also dropped multiple other high-profile crypto lawsuits and investigations. The long-running legal dispute between Ripple and the Securities and Exchange Commission (SEC) is finally over. The regulator confirmed yesterday (Thursday) that both parties have agreed to a settlement, which involves a $50 million penalty paid by the blockchain company. XRP Reacts Fast XRP also reacted quickly to the regulatory confirmation. The cryptocurrency jumped about 6 per cent in the last 24 hours, taking the 7-day return to almost 4 per cent. The latest settlement amount is only a portion of the $125 million initial penalty imposed on Ripple last year by Judge Analisa Torres of the Southern District of New York (SDNY). At that time, the SEC requested a $2 billion penalty against Ripple. The regulator alleged that Ripple raised over $1.3 billion by selling XRP tokens in an unregistered securities offering, violating federal securities laws. However, the Judge found that Ripple's direct sales of XRP to institutional clients violated federal securities laws, but the programmatic sales of XRP to retail clients through exchanges did not constitute a violation. After the earlier court order, both parties appealed: Ripple asked for the penalty to be dismissed, while the SEC sought a higher amount. $50 Million, Down from $2 Billion The regulator also highlighted that it would return over $75 million currently being held in escrow to Ripple. “This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement programme, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws,” noted SEC Commissioner Caroline Crenshaw in the official announcement. The settlement has been officially announced weeks after Paul Atkins took over as the SEC Chair . Atkins is viewed as a crypto-friendly individual, unlike his predecessor, Gary Gensler. However, Ripple’s CEO, Brad Garlinghouse, confirmed the end of the SEC battle in mid-March . This suggests that the settlement was confirmed when Mark Uyeda headed the regulatory agency in an acting capacity. Uyeda also dropped multiple other high-profile crypto lawsuits and investigations.

-- Price

--

You may also like

Pizza, Poker & AI Trading: A Recap of WEEX Crypto Pizza Day in Dubai

Relive WEEX Crypto Pizza Day in Dubai, where the MENA crypto community gathered at WEEX Dubai Studio to celebrate Bitcoin Pizza Day with pizza, poker, networking, and a live AI trading competition. Discover how WEEX turned a historic crypto milestone into a hands-on AI trading experience.

Why have foreign exchange stablecoins never taken off?

Rather than issuing a local currency stablecoin from scratch, it is better to build a layer of foreign currency pricing on top of a USD stablecoin, allowing users to enjoy the liquidity of the dollar while keeping accounts in local currency.

IOSG Founder: Please tell Vitalik the truth, let the OGs who have enjoyed the industry's dividends enlighten the young people

The wage earners freeze to death on the road, the sellers of goods die of thirst on the way. The weavers of brocade wear coarse cloth, and the grain growers do not have enough to eat.

Morning Report | SpaceX reveals it holds approximately $1.45 billion in Bitcoin; Nvidia's Q1 financial report shows revenue of $81.6 billion; Manus plans to raise $1 billion for buyback business

Overview of Important Market Events on May 21

Insiders: DeepSeek is forming a Harness team to compete with Claude Code

DeepSeek Code is coming.

SpaceX officially submitted its prospectus, unveiling the largest IPO in history

SpaceX's public market debut could take place as early as June, making it the first in a series of giant IPOs from AI companies, with OpenAI and Anthropic also waiting for the right moment.

Contents

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com