Expert Insights: Ripple’s Legal Resolution and its Impact on the Crypto Market
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Ripple’s Monetary Settlement with the SEC: Key Details
Former SEC official Marc Fagel has disclosed that Ripple has fully settled the financial judgment levied in the XRP lawsuit. This settlement marks a significant step for Ripple as it aims to move beyond legal challenges and concentrate on business growth and expansion.
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Ripple’s $125 Million Settlement Paid in Cash
In a recent social media update, Marc Fagel confirmed that Ripple paid the $125 million fine to the SEC in cash. This announcement came amidst speculation about the possibility of Ripple settling the judgment using XRP tokens. However, Fagel clarified that the payment was completed in cash, dispelling any rumors of an alternative settlement method.
Speculation from the XRP community suggested that the U.S. government might be liquidating its Bitcoin reserves to allow Ripple to pay the penalty with XRP, which would then be held in reserve. Nevertheless, Fagel emphasized that Ripple adhered to the court’s directive by depositing the funds into escrow, pending the finalization of both parties’ appeals.
Fagel further explained that once both parties retract their appeals, the court’s ruling will be enacted, and the funds will be transferred to the SEC. The Commission, he noted, would not accept the penalty in the form of XRP without a specific court mandate.
Ripple has already declared its intention to withdraw its cross-appeal against the SEC. The Commission is expected to reciprocate. Upon the Commissioners’ decision to withdraw their appeal, both entities will file a motion to dismiss the case, effectively concluding the XRP lawsuit.
Uncertainty Surrounding the SEC’s Timeline
Predicting the exact timeline for the SEC’s decision to drop its appeal is challenging, according to Fagel. He mentioned that the Commission typically requires one to two months to act on an enforcement recommendation. However, the timeline remains uncertain as the duration required for the SEC staff to recommend dismissal, following Judge Torres’s refusal to issue an indicative ruling, is unknown.
Fagel indicated that some cases receive expedited consideration, and the XRP lawsuit might be among them. The SEC has already demonstrated its willingness to expedite the case by reaching a settlement with Ripple. According to the agreement, the agency agreed to collect $50 million of the fine upfront, instead of the full $125 million.
As of the latest updates, XRP is trading at approximately $3.6, reflecting a 17% increase over the past 24 hours, as per CoinMarketCap data.
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