Ripple Labs and the US Securities and Exchange Commission have finalized a settlement agreement that, pending judicial approval, will bring an end to their prolonged legal dispute. The agreement, filed in a New York court on Thursday, stipulates a $50 million penalty, which is a fraction of the initial $125 million fine imposed by Judge Analisa Torres of the Southern District of New York, and a significantly reduced amount compared to the $2 billion fine initially sought by the SEC.
Judge Torres had previously ruled that Ripple violated securities laws by selling its XRP token to institutional investors, but not when making it available to retail customers on exchanges. Following an appeal by the SEC and a cross-appeal by Ripple, both parties have agreed to drop their cases under the terms of the settlement. This development comes as the SEC scales back its cryptocurrency investigations and litigation, marking a shift in approach under new leadership. The news has been positively received, with XRP experiencing a 9% increase in value.