The U.S. Securities and Exchange Commission (SEC) has officially filed request with Judge Analisa Torres, seeking approval for a proposed settlement with the Ripple labs that could bring an end to their long-running legal dispute over the status and initial sale of XRP.
The agreement outlines the plan for ending the Commission’s civil enforcement action against defendants Christian A. Larsen, Bradley Garlinghouse, and Ripple Labs, Inc.
In the filing, both parties asked the court to approve the dissolution of the injunction included in the previous Final Judgment and allow the release of the $125 million escrow account set aside for Ripple’s civil penalty.
Under the proposed agreement, Ripple would pay $50 million to the SEC to fully satisfy the penalty, while the remaining funds would be returned to Ripple.
The SEC and Ripple also informed the court that, if the request is approved, they will petition the U.S. Court of Appeals for the Second Circuit to send the case back to the district court to finalize the settlement.
If Judge Torres agrees to the proposed settlement terms, it would likely end the appeals and close one of the most closely watched enforcement actions in the cryptocurrency industry. A resolution could also have broader implications for how digital assets are regulated in the United States.
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