One of the most talked about legal battles of Crypto Sector in the US, Ripple Labs and Securities and Trade Fee are now seen reaching their final stage. Reports of a possible agreement are coming out in this year -long trial, which has caught the attention of the entire digital asset industry.
Recently, SEC has placed an official proposal in front of the Unutilized York Federal Judge Analisa Torres. In this, both SEC and Ripple have requested the court to cancel the instructions related to the Ultimate Judgment passed earlier and approve the agreement.
Why did this dispute between Ripple and SEC?
Ripple Labs is a famous crypto company that makes and uses digital currency called XRP. SEC alleges that Ripple raised billion dollars through the sale of XRP, but did not register it as “Security”, as is necessary under American laws.
SEC believes that this sale of XRP was made without full information to investors, which is a violation of the rules. That is why in 2020, SEC filed a civil case against Ripple’s CEO Brad Garlinghouse and Chairman Chris Larsen.
What is special in the agreement?
Sec vs ripple case In the two sides, the two sides have requested the court to remove the permanent ban imposed in the earlier decision. In addition, Ripple has also sought permission to release the $ 125 million Escrow Investmrent for a possible fine.
In this proposal, both SEC and Ripple have also clarified that if this petition is accepted, they will request the US Court of Appeals for the 2D Circuit to send the case back to the District court so that the agreement can be officially finalized.
How much penalty will Ripple have to pay?
Under this proposed agreement, Ripple has agreed to pay a fine of $ 50 million to SEC. The remaining $ 75 million, which were in the Escrow account, will be returned to Ripple.
This agreement may bring an economy relief for RIPPLE as it will also reduce the penalty pressure on the company and also get rid of legal ignorance.
What will be the process further in court?
If Pass Judgement on Torres approves this proposal, both RIPPLE and SEC together will ensure that the appeal of the case is abolished and the agreement in the District Court is given a final approval. This will officially stop the case and both sides will be able to focus on their respective activities.
What is its importance for the Crypto industry?
XRP Case Replace This agreement between both Ripple and SEC sides is not only a legal battle of a company, but the entire case can affect the direction of cryptocurrency regulation in the US. If this case is resolved, it can become a regular and clear guidance sign for other crypto companies.
This incident indicates that the balance between Crypto and the government is possible and a Robust Crypto Framework can be developed by legal consent.
Conclusion
This much -talked about legal battle of Ripple and SEC is now seen reaching its final stage. If the proposed agreement is approved, it can be a new beginning not only for RIPPLE, but for the entire Crypto Market. This case proves that technology and regulation can not go against each other, but can follow the path of interaction and cooperation.
