Ripple·SEC Settlement Approval Imminent?…"70% Chance of Early Resolution"

There are reports that the over four-year-long legal battle between Ripple (Ripple) and the U.S. Securities and Exchange Commission (SEC) may soon be coming to an end. Both parties recently jointly submitted a settlement proposal, and some are claiming there is as high as a 70% chance the U.S. court will approve it.

According to Coinpedia, a media outlet specializing in virtual assets (cryptocurrencies), on the 14th (local time), John Deaton, known as a pro-Ripple attorney, predicted, "There is a 70% chance that Judge Torres will approve the settlement." He pointed out, "The SEC has maintained an excessively aggressive stance against Ripple so far, and there are precedents in which the court has described this as 'arbitrary and capricious.'"

Recently, Ripple and the SEC requested the U.S. court to adjust the final ruling for 'exceptional circumstances,' based on a shared understanding to avoid prolonged litigation related to regulatory changes. Ripple has also preemptively deposited $125 million in escrow in preparation for civil penalties. If the settlement is approved, $50 million of this will be paid to the SEC as a fine, and the remaining $75 million will be returned to Ripple.

Meanwhile, in 2020, the SEC filed a lawsuit against Ripple for selling $1.3 billion worth of unregistered securities. Although Ripple won on some issues, discussions over the size of penalties and the final settlement have continued for years.