On Thursday, the U.S. Securities and Exchange Commission (SEC) announced a settlement agreement with Ripple Labs, Inc. and its executives Bradley Garlinghouse and Christian Larsen.
SEC Announces Settlement Agreement With Ripple and Two Executives
The move potentially ends a long-running civil enforcement action filed in December 2020.
Under the terms of the agreement, the SEC and Ripple will jointly ask the district court to consider dissolving an injunction imposed in an August 2024 judgment and to release funds held in escrow.
That escrow account currently holds a $125 million civil penalty, of which $50 million would be paid to the SEC, with the remainder returned to Ripple.
The SEC explained that should the court indicate it would approve these steps, the parties would then seek a limited remand to formally secure the relief, after which they plan to dismiss their respective appeals currently before the Second Circuit.
The SEC clarified that its decision to settle was not based on the merits of the case but was aimed at furthering its broader regulatory objectives in the crypto sector.
The SEC stated that “such resolution will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry, not on any assessment of the merits of the claims alleged in the action.”
