Ripple Labs Receives Reduced Settlement Offer from SEC
In an ongoing legal dispute with the SEC, Ripple Labs recently experienced a positive turn of events as the Securities and Exchange Commission reduced its proposed settlement from $2 billion to $102.6 million.
However, despite this massive cutback, Ripple has to decide whether to accept the deal, in which case XRP will remain legally unresolved or gamble on a possibly devastating court war.
The crypto community was astonished at the original $2 billion fine that SEC imposed on them. This led Ripple to offer a mere $10 million referring to a historical range of settlements by SEC between 0.6% and 1.8% on revenue. The settlement of Terraform Labs for instance was mentioned among other differences such as bankruptcy and total cessation which do not apply to Ripple.
Nevertheless, this comparison was rejected by the SEC who argue that Ripple is still up and running without having agreed to any similar relief measures. They claim that the $102.6m settlement is necessary for preventing further misconducts in the space.
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While immediate financial relief can be obtained if they accept the settlement, leaving XRP’s legal status uncertain could adversely affect market performance and interest from institutional investors. If it rejects it, however, there may be protracted litigation entailing huge expenses with indeterminate outcomes.
This revised settlement offer indicates a possible shift from their initial hardline stance by showing some SEC willingness towards negotiating with Ripple; talking about any crypto related future enforcement actions taken by SEC; thereby affecting all industries involved in this scenario itself. It will also go a long way into determining how regulators engage with digital currencies in general apart from what happens next for Ripple itself.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
