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Ripple, SEC Ask US Court To Release $125 Million In Escrow As They Seek To Settle Years-Long Case
- Ripple and the SEC have asked the Manhattan District Court to release $125 million from escrow as they move towards settling their long-running legal dispute.
- The parties proposed a $125 million settlement wherein $50 million would go to the SEC as a civil penalty, with the rest returned to Ripple.
- The legal battle, ongoing for nearly five years, started when the SEC accused Ripple of raising $1.3 billion through unregistered XRP sales in late 2020.
- In a partial legal victory for Ripple in 2023, a judge ruled that XRP sales to retail buyers were not securities offerings, but institutional sales violated securities laws.
- The SEC initially sought a $2 billion fine, later reduced to $125 million, with $50 million potentially going to the SEC and $75 million to Ripple.
- The fate of the latest motion is deemed 'very important,' as failure to allow it could lead both parties back to litigation and appeals.
- Bill Morgan, a prominent attorney, highlighted the significance of the current motion for settlement in the Ripple-SEC case.
- An earlier joint motion for a ruling on the settlement was rejected by Judge Torres due to procedural flaws and pending appeals at the Second Circuit.
- The latest joint motion mentions 'exceptional circumstances,' such as the SEC shifting its approach towards crypto enforcement under a new chairman.
- The SEC's stance on crypto regulation changed after the appointment of crypto-friendly Paul Atkins following Donald Trump's presidency.
- The recent move to release funds from escrow indicates a potential resolution in the Ripple-SEC case after years of legal wrangling.
- Both parties are seeking to avoid additional litigation and reach a settlement in the high-profile legal saga.
- The proposed settlement represents a significant development in the ongoing dispute, with implications for Ripple and the broader crypto industry.
- The potential resolution could have implications for future regulatory clarity surrounding digital assets like XRP.
- The evolving dynamics in the Ripple-SEC case underscore the shifting landscape of crypto regulation in the United States.
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