Ripple has settled with the U.S. Securities and Exchange Commission (SEC), agreeing to pay a $50 million penalty and withdraw its cross-appeal in the long-running lawsuit.
In return, the SEC will request that an injunction that prevents Ripple from selling XRP to institutional investors be removed.
The settlement significantly reduces Ripple’s financial penalty, originally set at $125 million.
Ripple’s SEC Case Nears End as Both Sides Settle, Penalty Cut to $50M
Ripple’s Chief Legal Officer Stuart Alderoty confirmed the agreement in a post on X, describing it as the final step in resolving the case.
“The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever,” he wrote.
Alderoty added that both parties had agreed to withdraw their respective appeals and that the SEC had settled for a reduced fine, cutting the original $125 million penalty to $50 million.
“The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple,” he said.
The legal battle, which began in December 2020, was in an appeal phase after Judge Analisa Torres ruled that while XRP sales to retail investors on exchanges did not violate securities laws, institutional sales did meet the criteria for investment contracts under the Howey Test.
The SEC is now set to request that Judge Torres lift the standard injunction imposed on Ripple following the agency’s motion.
While the settlement marks a major step toward closing the case, the agreement still requires a final vote from the SEC and the completion of standard court procedures.
Once finalized, the case will officially conclude, ending one of the most closely watched legal disputes in the crypto industry.
The court’s partial ruling was seen as significant for the broader crypto market, as it clarified that not all digital asset sales automatically qualify as securities transactions. It also added legal nuance to ongoing regulatory discussions in the U.S.
However, the news had little impact on XRP’s price. As of press time, the token was trading at $2.47, up 1% on the hourly timeframe, with no significant deviation from other major cryptocurrencies in the same period.
Ripple Declares Victory as SEC Ends Appeal, Paving Way for Expansion
Ripple’s years-long legal battle with the U.S. Securities and Exchange Commission (SEC) has officially ended.
CEO Brad Garlinghouse confirmed on March 19 that the regulator has dropped its appeal, marking a decisive win for the company and the broader crypto industry.
The announcement came during the Digital Asset Summit in New York, where Garlinghouse reiterated that the case was now closed, nearly four years after the SEC sued Ripple over an alleged $1.3 billion unregistered securities offering.
He expressed gratitude to Ripple’s employees, legal team, and the XRP community for supporting the company throughout the legal battle.
With regulatory uncertainty now behind it, Ripple is turning its focus to growth. The company has invested over $2 billion in crypto-related acquisitions, reinforcing its belief that a thriving crypto market benefits Ripple’s long-term success.
The case’s resolution follows a shift in U.S. regulatory leadership under President Donald Trump, whose administration has taken a more supportive stance on crypto.
As Ripple moves forward, the end of this legal saga marks a turning point for both the company and the industry at large.
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