SEC vs Ripple: The $50M Comedy of Errors 🎭💸

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In a twist that would make even the most jaded bureaucrat chuckle, Ripple has decided to drop its cross-appeal against the SEC. This comes after the SEC, in a rare moment of clarity, withdrew its case against the crypto firm last week. Stuart Alderoty, Ripple’s Chief Legal Officer, took to X to announce this development, perhaps while sipping a martini and laughing at the absurdity of it all.

Under the settlement, the SEC will pocket $50 million from the $125 million penalty originally levied against Ripple. The remaining $75 million will be returned to Ripple, who will likely use it to throw a lavish party celebrating their victory. The SEC has also promised to request the court lift a previous injunction against Ripple, though this is still pending the usual bureaucratic red tape.

This settlement brings an end to a legal saga that began in December 2020, when the SEC accused Ripple of operating an unregistered securities offering through XRP sales. The case was seen as a litmus test for how U.S. securities laws apply to digital assets, and its conclusion suggests a shift in the SEC’s approach to regulating cryptocurrency.

Since President Donald Trump began his second term in January, the SEC has seemingly adopted a more relaxed stance. The agency has dropped lawsuits against major crypto exchanges like Coinbase and Kraken, and may even settle its fraud case against crypto entrepreneur Justin Sun. It seems the SEC has decided that perhaps not every crypto firm is a villain in need of a regulatory smackdown.

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2025-03-25 21:58