A significant lawsuit in the fields of cryptocurrency and blockchain technology recently ended, when the long -running dispute between Ripple Labs and US Securities and Change Fee (SEC) ended with a new agreement. The lawsuit was about the sale of Ripple’s XRP Token, which was accused by SEC as an unregistered securities offering in 2020. After this agreement, SEC withdrew its appeal, after which RIPPLE decided to abolish its cross-popular. What is rippleClick on the link to know.
Sec vs in ripple case Compromise and settlement
Recently, RIPPLE and SEC ended this long legal battle. Ripple decided to abolish its cross-appeal and SEC withdrew its allegations. Under the agreement, SEC will get $ 50 million out of the $ 125 million fine imposed on Ripple, already placed in an interest-bearing escrow account.
The remaining $ 75 million will be returned to Ripple. In addition, the SEC will request the court to remove the old prohibitory order imposed on RIPPLE. However, this process is yet to be completed under final legal procedures, including SEC’s vote and confirmation from the court.
SEC and Ripple controversy
The trial began in December 2020, when SEC accused Ripple Labs that it did the sale of XRP Token without registering as securities. SEC argued that XRP falls under the category of securities as compared to Bitcoin and Etreum, as it is used to benefit investors.
Ripple Labs opposed the allegation that XRP could not be put in the category of securities, as it acts like a digital currency, such as BTC and Eth. After which the matter reached the High Court and the dispute became an important test for the Crypto World, where the question arose as to how much the US Securities Law could have an impact on the cryptocurrency. If you live XRP value If you want to know, click on the link.
SEC’s new strategy
Along with this agreement, a change in regulatory strategy on SEC’s cryptocurrency also indicates. In recent months, SEC has withdrawn cases against some major crypto exchanges such as Coinbase and KRAKEN and during the second term of President Donald Trump, the agency has slightly loosened its enforcement proceedings. In addition, SEC is now considering settling the fraud case against Crypto Entrepreneur Justin Solar.
Conclusion
The dispute between Ripple and SEC eventually ended with an agreement, which is an important step for the Cryptocurrency World. The case is not only for Ripple, but also for the entire Crypto industry, as it reflects the direction of American regulatory agencies and their attitude towards cryptocurrency. Now it has to be seen what changes in cryptocurrency space are made from SEC’s new attitude and will it provide relief to other crypto companies.
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