After months of speculation and legal back and forth, Ripple and the US Securities and Exchange Commission (SEC) have officially arranged their business. While insiders had hinted at Ripple weeks ago that a deal had been closed, many waited in the crypto community for written confirmation of the SEC itself. That confirmation has now arrived.
The SEC has publicly announced that it has reached a settlement agreement with Ripple to resolve its social enforcement measures. The agreement also relates to Ripple’s managers, although that part had already been arranged. What is most important for XRP holders is the deal with Ripple and his XRP token.
According to the settlement conditions, Ripple pays $ 50 million from the original $ 125 million fine. The remaining amount is returned to Ripple. Both parties have also agreed to drop their profession – but only if the court agrees to cancel the order that has been placed on Ripple for months.
Lawyer John Deaton, who followed the case closely, weighed the news. He said it would be “absolutely shocking” if judge Analisa Torres would not agree to lift the order, given the circumstances.
Legal experts issue clarification
Shortly after the settlement details popped up, rumors began to spread online that Ripple would pay the $ 50 million fine with the help of XRP, and that the US government was planning to keep XRP as part of a strategic reserve. Former sec lawyer Marc FageI quickly rejected those claims. He clarified that the money is already in cash in the guardianship of Ripple, and as soon as the court approves the deal, it is paid to the SEC – not in XRP.
Lawyer Bill Morgan also came in to tackle the false reports. He explained that the original fine amount had already been placed on a USD account that earned interest, and both parties have agreed how it will be distributed according to the settlement conditions.