Summary:
⚈Court approval would release $125M in escrow funds back to Ripple Labs
⚈ XRP jumped 7.65% on the news, breaking past key resistance at $2.29
On May 8, the long-standing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) moved a step closer to resolution as the two parties reached a settlement agreement.
Should the agreement be approved by the court, it would remove the injunction holding $125 million worth of funds in escrow as part of the previous judgment, which required the blockchain firm to pay the amount in fines.
Instead, under the new agreement, Ripple Labs would pay the Commission $50 million and have the remaining escrow funds to be released.
The deal marks a stark departure from the last appeal filed by the SEC before the former Chair Gensler resigned, in which the watchdog argued that the court’s previous decision was erroneous and continued insisting that, despite XRP itself not being a security, the contracts by which the token is sold are.
It does, however, toe the line of expectations set during President Donald Trump’s campaign and the promise held by the SEC’s pivot following the change in Administration. The Commission explained the agreement as part of its effort to revamp the regulatory framework for cryptocurrencies.
XRP price soars on Ripple-SEC deal
The news about the deal had an immediate and positive effect on XRP as the token soared 7.65% within a day and is, at press time on May 9, changing hands at $2.39.
The rally ensured that the cryptocurrency is now 32.85% in the green in the monthly chart and helped it cross the previously troublesome threshold at $2.29, a price level rejected twice in late April.
Featured image via Shutterstock
