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SEC and Ripple seek to split $125 million fine

It looks like the long-running dispute between Ripple and the SEC could be resolved soon.

By Finst News
• 2 min read
SEC and Ripple seek to split $125 million fine

It looks like the long-running dispute between Ripple and the SEC could be resolved soon. According to the reporter View post on X, Ripple and the U.S. market regulator SEC have submitted a new proposal to reduce the $125 million fine. They are asking the Manhattan court to release funds from restricted accounts. Of that, $50 million would go to the SEC and the remaining $75 million would go back to Ripple.

In May, the SEC and Ripple agreed to cut the fine to $50 million. But Judge Torres rejected that proposal at the time. According to her, there weren’t enough good reasons to adjust the fine. Now, the judge again has to decide whether to approve the new proposal. It isn’t yet certain whether that will happen.

The $125 million fine came about because the court found that Ripple violated U.S. securities law by selling XRP to large investors. Sales to retail investors were not considered an issue by the court.

So far, news of a possible settlement hasn’t had a positive effect on XRP’s price. Market uncertainty, partly due to an Israeli attack on Iran and tensions in the Middle East, affects investor behavior.

The current XRP price is $2.15, down more than 3% from yesterday. Still, there’s some good news: Ripple announced that Ethereum’s smart contracts will soon be available on the XRP network. This should start in Q2.

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