Ripple and SEC Finalizing Settlement Terms, XRP Sees Price Surge
- XRP price jumps 3% as Ripple nears settlement with the SEC over legal penalties.
- Ripple seeks favorable terms in SEC settlement, aiming to reduce a $125M fine.
- SECs shifting crypto stance could influence Ripples lawsuit outcome and market impact.
The U.S. Securities and Exchange Commission and Ripple Labs prepare to finalize their settlement terms in their prolonged legal dispute. Multiple insider sources indicate both parties continue negotiating settlement conditions which might lead to a legal resolution of their over four-year dispute.
Following the rumors of an imminent resolution, XRPs price saw an immediate jump of approximately 3%, moving from $2.14 to $2.24 in under an hour. The digital asset is currently trading at $2.23. This surge reflects the markets optimism regarding a potential settlement.
Negotiations Centered on Legal Penalties
Reports from sources familiar with the negotiations highlight that the core issue in the talks revolves around Ripples desire to secure more favorable terms related to an August ruling. In that ruling, District Judge Analisa Torres of the Southern District of New York had imposed a $125 million fine on Ripple and issued a permanent injunction barring the company from selling XRP to institutional investors.
The legal team at Ripple asserts that changes in cryptocurrency regulatory policies by the SEC under its current leadership diminishes the significance of potential fines. Ripple has expressed doubt about continuing enforcement actions under previous laws because the new SEC commissioners led by Mark Uyeda reveal friendlier attitudes toward digital assets during their administration.
Furthermore, the company contends that accepting the ruling would imply an admission of wrongdoing, which the company is reluctant to do. Ripples legal representatives argue that, given the SECs evolving position on crypto enforcement, the penalties should be revisited.
Potential Impact of a Settlement
The settlement of this lawsuit could have far-reaching consequences, not only for the company but for the broader cryptocurrency market. The resolution of this case may set a precedent for how digital assets are regulated moving forward, particularly regarding the categorization of tokens and their compliance with securities laws.
A settlement has the potential to enhance XRP market trust which would establish stability and bring back institutional investors into the digital asset network. The ongoing legal battle with Ripple seems to indicate that the SEC aims to establish straightforward regulatory protocols for cryptocurrencies since they have taken similar actions against other blockchain companies including Coinbase and Kraken.
Read more: https://www.tronweekly.com/ripple-and-sec-finalizing-settlement-terms/
Text source: TronWeekly
