Ripple Labs and the US Securities and Exchange Commission (SEC) have officially reached an agreement which, if approved by a judge, will end their years of legal battle.

According to a conciliation agreement filed in New York on Thursday, both parties have accepted a $ 50 million penalty – some of the $ 125 million fines initially introduced by Judge Analisa Torres in the southern district of New York (SDNY), and a small fraction of the massive $ 2 billion fine was initially requested by SEC.

In his decision of 2023, Judge Torres found that Ripple violated securities laws in selling his original XRP token to institutional investors, but did not violate the securities legislation in putting XRP on stock exchange to retail customers to buy in a suit originally brought in 2020 under the then Sec chairman Jaay Clayton (who is now District in New York).

SEC, then under the leadership of former President Gary Gensler, appealed Torres’ decision, causing Ripple to arrive. According to the settlement agreement, both parties agree to drop their cases. The filing on Thursday confirms Ripple’s announcement in March that it had reached a principled settlement agreement with SEC.

Read more: Ripple to get $ 75 MIO

The settlement comes in the midst of SEC’s full -scale retreat from a number of crypto investigations and litigation that began during Gensler’s term of office. After US President Donald Trump joined in January and appointed crypto-friendly Paul Atkins to serve as SEC’s new chairman, the agency has made a face on crypto-regulation.

XRP rose 9% on the news and continued a 24-hour increase in value.

Ripple did not respond to Coindesk’s request for comment.