SEC to Refund $49 Million of Ripple Fine to Wrap Up Case

SEC Will Keep $50 Million of Ripple Fine and Refund the Rest

The Securities and Exchange Commission (SEC) has reached a settlement with Ripple Labs, agreeing to refund $20 million of the $70 million fine originally imposed for allegedly selling unregistered securities.

As part of the agreement, the SEC will retain $50 million of the fine, while Ripple will receive a refund of $20 million. The settlement comes after the SEC filed a complaint against Ripple in December 2020, alleging that the company's XRP token was an unregistered security.

Ripple had denied the allegations, but the company has since agreed to the settlement. The refund is a significant reduction from the original fine, and it marks a rare instance of the SEC agreeing to refund a portion of a fine in a settlement.

The settlement brings an end to the SEC's enforcement action against Ripple, which had been a major controversy in the cryptocurrency industry. The case had raised questions about the regulatory treatment of digital assets and the potential for them to be classified as securities.

Ripple's CEO, Brad Garlinghouse, had previously stated that the company was committed to cooperating with the SEC and working to resolve the matter. The settlement is seen as a positive development for Ripple, which has faced significant challenges and uncertainty in the wake of the SEC's enforcement action.

The SEC's decision to refund a portion of the fine is also seen as a sign that the agency is willing to work with companies to find a resolution that balances its regulatory goals with the need to avoid overly punitive measures. The settlement is expected to have significant implications for the cryptocurrency industry, which has been grappling with regulatory uncertainty in recent years.