The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken a crucial turn, with the company’s Chief Legal Officer (CLO) Stuart Alderoty confirming that the case is now essentially over. This follows Ripple’s CEO, Brad Garlinghouse, declaring last week that the SEC had officially dropped its appeal, which many thought meant the case was concluded. However, there remained some confusion surrounding whether the legal dispute had truly come to an end.

Ripple, the company behind the popular cryptocurrency XRP, had been in a legal tussle with the SEC since late 2020 over whether XRP should be classified as a security. Initially, the SEC sought a hefty $2 billion fine from Ripple for allegedly conducting an unregistered securities offering. However, in a significant development in 2024, U.S. courts ruled against the SEC’s claim, imposing a $125 million fine on the company instead.

Despite the ruling, the SEC decided to appeal, hoping to secure a larger penalty. But this appeal has now been dropped, a move that led many to believe the battle was over. Yet, some aspects of the case remained unclear, particularly regarding the total fine Ripple would have to pay.

In his latest update, Ripple’s CLO Stuart Alderoty clarified the situation. He explained that Ripple had agreed to drop its cross-appeal, a decision that significantly impacted the final outcome. As a result, the SEC will now only receive $50 million of the original $125 million fine imposed by the courts. This amount is already secured in an interest-bearing escrow account in cash. The remaining $75 million will be returned to Ripple.

This move effectively ends the legal dispute in favor of Ripple, with the company now free from the looming threat of further penalties or obligations. Alderoty further emphasized that this would be his final update on the lawsuit, indicating a strong belief that the matter has been resolved once and for all.

Although Ripple’s declaration last week caused a brief surge in XRP’s value, with the cryptocurrency jumping from $2.3 to $2.6 per coin, the latest developments have had a more subdued effect on the market. XRP’s price has failed to break above the $2.5 resistance level, showing little movement since the news was made public. Despite the relief felt by Ripple and its supporters, the cryptocurrency market remains volatile, and XRP’s price is still navigating the complexities of investor sentiment.

It is important to note that this resolution is still subject to a vote by the SEC commissioners. However, with Alderoty’s statement and the company’s willingness to settle, it seems highly likely that the legal battle will truly be over soon. Ripple’s legal team appears confident that the reduced penalty, which will return most of the fine, signals the end of this protracted conflict with the SEC.

The case has been pivotal in shaping the regulatory landscape for cryptocurrencies, and Ripple’s victory could have far-reaching implications for the broader digital asset industry. As the final details of the settlement unfold, industry observers will be keeping a close eye on how this case may influence future regulatory actions against other cryptocurrency companies.

In conclusion, while the SEC’s decision to drop its appeal and the reduced penalty signify a victorious outcome for Ripple, the cryptocurrency market remains cautious. With Ripple’s legal battle behind it, the company can now focus on growing its platform, while XRP’s future price movements remain to be seen.