Ripple and SEC cases close in escrow deal of $125 million in joint court filing

Table of Contents

Ripple and the SEC will end the lawsuit with a $125 million escrow transaction and mark the final court chapter.

XRP is no longer classified as secondary market security after the judge’s 2023 ruling.

In the meantime, XRP prices have risen to $2.16, turning to resistance levels of $2.35 and $2.60.

After almost five years of courtroom drama, the Ripple vs. SEC case has finally reached its final chapter. In a joint move, Ripple and the U.S. Securities and Exchange Commission called on a New York court to release a $125 million escrow fund, marking the end of a long battle.

Meanwhile, XRP is no longer considered secondary market security, and has increased XRP prices, and is currently trading around $2.15.

Joint submission by Ripple & Sec

In December 2020, it accused the US SEC of raising $1.3 billion through unregistered XRP sales, which began as the first case of suing Ripple.

Now, after several important rulings and appeals, both Ripple and the SEC have reached a final agreement.

According to their joint filings, $50 million will be sent to the SEC as civil penalty from the escrow account, but Ripple will receive the remaining $75 million, which has been pending court approval.

In a letter to the court, the parties said the move would avoid further appeals and officially end the lengthy lawsuit.

The legal status of XRP has become clear

The allegation follows Judge Analisatore’s 2023 ruling. This made it clear that XRP is not security when traded in the secondary market. That decision greatly increased reliability for Ripple and the broader crypto industry.

However, the court also found that early sales of XRP to institutional investors qualify as securities.

Even Ripple CEO Brad Garlinghouse welcomed the decision to drop the SEC’s appeal and called it an “milestone moment” for the entire industry.

XRP prices are stable

Following the news, XRP shows signs of recovery despite the recent market dip. The token is currently trading at around $2.16, reflecting a 2.45% jump over the last 24 hours.

Meanwhile, experts are looking at a potential resistance heading towards $2.44-$2.60 at $2.35 if momentum accumulates. On the downside, support is close to $2.05.