Ripple and the SEC Reach a Settlement: $50M Paid, Case Nearing Finalization

Posted by cryptonews Crypto News March 26, 2025 450 Views

The SEC settlement with Ripple represents a sea change in the regulation of cryptocurrencies. It establishes a standard for the larger digital asset market and lessens legal ambiguities for XRP. The outcome of the case may change the classification and regulation of cryptocurrencies.

In a settlement with the U.S. Securities and Exchange Commission (SEC), Ripple agreed to drop its cross-appeal in the protracted case and pay a $50 million penalty.

The SEC will ask for the lifting of an injunction that stops Ripple from offering institutional investors XRP in exchange.

The settlement significantly lowers Ripple’s initial financial penalty of $125 million.

Ripple’s SEC Case Nears End as Both Sides Settle, Penalty Cut to $50M

In a post on X, Stuart Alderoty, the Chief Legal Officer at Ripple, confirmed the agreement and called it the last step in settling the case.

He wrote, “The last update on SEC v. Ripple ever—the last crossing of t’s and dotting of i’s.”

Alderoty went on to say that the SEC had reached a settlement for a smaller fine, bringing the initial $125 million penalty down to $50 million, and that both parties had consented to withdraw their individual appeals.

“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.

Judge Analisa Torres’ decision that XRP sales to retail investors on exchanges did not violate securities laws but that institutional sales did meet the requirements for investment contracts under the Howey Test put the legal battle, which had started in December 2020, into an appeal phase.

In response to the agency’s motion, the SEC is now prepared to ask Judge Torres to lift the standard injunction placed on Ripple.

The agreement still needs to pass the SEC’s final vote and go through the usual court procedures, even though the settlement is a significant step toward ending the case.

The case will formally end once it is resolved, bringing an end to one of the most closely followed court cases in the cryptocurrency sector.

The court’s partial decision, which made it clear that not all sales of digital assets automatically count as securities transactions, was viewed as important for the larger cryptocurrency market. Additionally, it gave ongoing regulatory discussions in the United States more legal nuance.

The price of XRP was not significantly impacted by the news, though. The token was trading at $2.47 at the time of writing, up 1% on an hourly basis, and it did not significantly deviate from other prominent cryptocurrencies during that time frame.

Ripple Declares Victory as SEC Ends Appeal, Paving Way for Expansion

Officially, Ripple and the U.S. Securities and Exchange Commission (SEC) have concluded their years-long legal dispute.

In a resounding victory for the business and the larger cryptocurrency sector, CEO Brad Garlinghouse announced on March 19 that the regulator had withdrawn its appeal.

Nearly four years after the SEC sued Ripple over an alleged $1.3 billion unregistered securities offering, Garlinghouse made the announcement at the Digital Asset Summit in New York, reiterating that the case was now closed.

He thanked the XRP community, the legal team, and Ripple’s staff for helping the company during the legal dispute.

Now that regulatory uncertainty has passed, Ripple is concentrating on expansion. The business has spent more than $2 billion on crypto-related acquisitions, demonstrating its conviction that a robust cryptocurrency market contributes to Ripple’s long-term prosperity.

The case’s settlement comes after President Donald Trump’s administration adopted a more pro-crypto posture, changing the regulatory landscape in the United States.

The resolution of this legal dispute represents a sea change for Ripple and the industry as a whole.

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