Ripple reaches a settlement agreement with the SEC, which may end a four-year litigation dispute

ChainCatcher news, according to official information, Ripple Labs has reached a formal settlement with the U.S. Securities and Exchange Commission (SEC). Both parties have submitted the agreement to a New York court, which, if approved, will end the long-standing litigation surrounding the XRP token that began in 2020. Ripple will pay a $50 million fine, significantly lower than the SEC's previous demand of $2 billion and the court's earlier ruling of $125 million.

According to the agreement, both parties will withdraw their respective appeals. This settlement is also seen as a sign of the SEC's shift in its cryptocurrency regulatory strategy.

Previous news, Ripple agreed to waive its cross-appeal, and the SEC will retain $50 million of the $125 million fine.