Quick overview
- XRP’s settlement with the SEC is delayed as Ripple’s $125 million penalty remains in escrow due to pending appeals.
- The penalty has been paid in cash but cannot be transferred to the U.S. Treasury until both Ripple and the SEC withdraw their appeals.
- A joint dismissal is required for the escrow release, and the SEC’s internal vote on this is still pending.
- Recent regulatory initiatives may expedite the resolution of the XRP lawsuit and similar cases.
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XRP’s final settlement with the SEC has been delayed because Ripple’s $125 million penalty is still in escrow and has not been transferred to the U.S. Treasury, pending the withdrawal of both Ripple’s and the SEC’s appeals. Since the SEC has not yet withdrawn its appeal in the XRP case, Ripple’s $125 million penalty remains in escrow.
The transfer to the U.S. Treasury is on hold until both parties withdraw their appeals, although Ripple paid the money in cash.
The case remains open, and the funds are kept safely in escrow.
The SEC is still appealing, but Ripple has withdrawn its cross-appeal. Marc Fagel, a former SEC attorney, explained that a joint dismissal is needed for the escrow to be released. Judge Torres’s decision is not final until the SEC completes an internal vote to approve dismissal, so the penalty stays in escrow until then.
Recent Washington initiatives, such as SEC Chair Paul Atkins’s “Project Crypto,” aim to modernize securities regulations. These regulatory changes suggest a more targeted approach, treating fewer tokens as securities. This evolving landscape could speed up the resolution of cases like the XRP lawsuit against Ripple. The penalty was paid in cash, not XRP tokens.
The penalty will not be transferred until the court’s decision is final and Ripple and the SEC jointly withdraw their appeals. Until then, the money remains in escrow.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.
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