Ripple and SEC Near Settlement After Prolonged Legal Battle

The extended legal conflict between Ripple and the U.S. Securities and Exchange Commission (SEC) seems to be approaching its end after four and a half years. Recently, both parties submitted a joint settlement proposal to the court. According to CoinGape's report on the 14th, pro-Ripple attorney John E. Deaton estimates a 70% likelihood that Judge Analisa Torres will approve the settlement request.

Key Terms of the Proposed Settlement

Under the terms of the settlement, Ripple agrees to utilize $125 million in escrowed funds. From this amount, $50 million will be paid to the SEC as a civil penalty, while Ripple will retain the remaining $75 million. The proposal underscores that avoiding further appeals would save judicial resources and conclude the extended litigation.

Reactions to the Proposed Settlement

Attorney John Deaton expressed his viewpoint on the proposed agreement, indicating his hope that the SEC would acknowledge its previously over-aggressive approach to cryptocurrency regulation.

On the other hand, Marc Fagel, a former SEC official, criticized the agency's rationale for its policy shift. He noted that the SEC referenced political circumstances and elections in the settlement documentation, arguing that these reasons are "weak from a legal standpoint."

Market and Legal Analyst Reactions

The market sentiment is largely positive regarding Judge Torres approving the settlement. Legal expert Bill Morgan also commented, stating that while the primary argument of the settlement hinges on procedural factors, the likelihood of approval remains high.

The resolution of this legal dispute could establish a significant precedent for future interactions between regulators and cryptocurrencies. This development may signal a shift in the industry's relationship with the SEC. Investors and industry stakeholders eagerly await the court's decision, which could close a contentious chapter in cryptocurrency regulation.