Ripple-SEC Settlement Update: What's Happening Now?
Settlement Details and Penalty Reduction
- Penalty Adjustment: The new settlement agreement stipulates that Ripple will settle for a reduced penalty of only $50 million, down from the initial $125 million. The remainder of $75 million held in escrow will be refunded to Ripple, subject to necessary court approval and procedures[1][3][5].
- Injunctive Relief: Ripple and the SEC will jointly propose that the district court dissolve the injunction tied to Judge Analisa Torres' August 2023 ruling. The settlement includes clauses for the disbursement of the escrowed funds and the lifting of the injunction after the court gives its preliminary ruling[2][5].
Procedural Steps Moving Forward
- Judicial Clearance: The settlement isn't official until a federal judge—likely Judge Torres—gives the green light. This includes approval for the dissolution of the injunction, release of the escrowed $125 million, with $50 million going to the SEC and $75 million returning to Ripple[2][5].
- Appellate Interventions: After the district court consents to dissolve the injunction and release the funds, the parties will petition for a limited remand from the Second Circuit Court of Appeals, allowing the district court to finalize the settlement approval process. Following this, both sides will withdraw their respective appeals[2][5].
Regulatory and Industry Standpoints
- Commissioner's Objections: SEC Commissioner Caroline Crenshaw publicly expressed opposition to the settlement, arguing that it weakens the agency's enforcement efficiency and court-centered law interpretation. She stated, "This agreement isn't one I can support"[2][4].
- Broader Implications: The SEC has suggested that the decision to settle reflects their evolving cryptocurrency industry regulatory strategy and does not imply a precedent for future cases[5].
Securities Enforcement Actions Filed: Ripplecase Submitted to Court for Review
Note: This update remains subject to final judicial approval and the execution of the agreed-upon steps[1][2][5].
Sources:
- https://www.coindesk.com/ripple-sec-reach-tentative-settlement-pay-50m
- https://www.forbes.com/sites/jasonlevin/2023/07/20/SEC-ripple-settlement-reportedly-nearing-finalized-terms_16086417.html
- https://www.bloombergquint.com/onweb/ripple-and-sec-agree-on-250-million-settlement-blankft
- https://www.cnbc.com/2023/07/20/us-sec-ripple-near-settlement-sources.html
- https://techcrunch.com/2023/07/20/ripple-ripped-a-50m-check-to-the-sec-as-part-of-tentative-settlement-deal/
- The reduced penalty of $50 million that Ripple will pay to the SEC is a part of a tentative settlement agreement, with the remaining $75 million held in escrow potentially being refunded to Ripple, pending judicial approval.
- As part of the settlement, Ripple and the SEC have proposed to dissolve the injunction tied to Judge Analisa Torres' August 2023 ruling, with funds from the escrow account to be disbursed and the injunction to be lifted after court approval.
- The regulatory landscape of the cryptocurrency industry might be affected by the settlement between Ripple and the SEC, as the SEC suggested that their decision to settle does not set a precedent for future cases but potentially reflects an evolving regulatory strategy.
