The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken a new, important step, according to a post by Fox Business journalist Eleanor Terrett.
The two parties have requested that the Manhattan District Court approve an injunction and free a $125 million civil penalty that has been in escrow. The step is an indication that the long-standing conflict might be coming to an end.
The proposed $125M resolution
In the proposal, it is also planned that $50 million would be paid to the SEC, and the rest, $75 million, would be returned to Ripple. This is one motion brought before Judge Analisa Torres of the Southern District of New York in a move to have the case settled and prevent the appeals that are pending and any further litigation.
The document, labeled as Case 1:20-cv-10832-AT-SN, was filed through the electronic filing system of the court.
Before the resolution of this Ripple case, the XRP token, which is associated with Ripple, experienced a massive decline in price. The value of XRP will likely increase with a settlement. The investors that have been hesitant to join the market may now be more comfortable, with a brighter future ahead of them.
The possibility of cash flow back to Ripple also implies that the company would be able to reinvest in their business, which will further enhance innovations and developments in the blockchain sector. This would also bring new opportunities to the investors, as a renewed Ripple would further grow its payment solutions internationally, resulting in higher demand for XRP.
Ripple-SEC joint filing suggests regulatory change
Although the court has not granted this motion, the fact that the two sides filed a joint request is already an indication of good cooperation between Ripple and the SEC. Should it succeed, it may become a precedent on how cryptocurrency-based companies can deal with regulatory issues and provide a blueprint to other companies in the field.
This development, reported by Eleanor Terrett on X, highlights the changing nature of the relationship between regulators and the crypto industry.
In an updated development, Terrett explained that exceptional circumstances, including a settlement, a shift in the SEC’s crypto policy, and a wish to avoid more legal battles, might lead to changes in Judge Torres’s earlier ruling. This comes after the judge rejected a similar request in May.
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