Ripple Labs has settled with the US Securities and Exchange Commission (SEC).
The company has agreed to pay a reduced $50 million fine in a case that has been closely watched by the cryptocurrency industry.
The deal marks a major turning point for Ripple and its XRP token, as it effectively ends one of the SEC’s most high-profile legal battles against a crypto firm.
The settlement, which still requires formal approval from the court and the SEC, comes as US regulators signal a softer approach to the industry under the new administration.
Ripple’s legal battle with the SEC
The lawsuit, filed by the SEC in December 2020, accused Ripple of selling unregistered securities through XRP token sales.
In August 2023, US District Judge Analisa Torres ruled that XRP sales on public exchanges did not qualify as securities transactions, dealing a blow to the SEC’s enforcement approach against crypto firms.
However, the judge also determined that Ripple’s $728 million in XRP sales to institutional investors did violate securities laws.
Initially, Ripple was ordered to pay a $125 million fine, but under the new settlement, the SEC will retain just $50 million of that amount, which is currently held in escrow.
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the agreement on social media, emphasizing that the company made no admission of wrongdoing.
The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever…
Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an
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SEC shifts stance on crypto lawsuits
The SEC’s decision to settle with Ripple is part of a broader trend indicating a shift in regulatory enforcement under President Donald Trump’s administration.
Since Trump’s return to the White House, the SEC has dropped its appeals in the Ripple case and ended civil lawsuits against crypto exchanges Coinbase and Kraken.
The regulator has also signaled a possible resolution of a fraud case against Justin Sun, a Chinese entrepreneur and key figure in the crypto space.
Meanwhile, Trump’s nominee for SEC Chair, Paul Atkins—a lawyer known for his pro-crypto stance—is set for a Senate confirmation hearing this week.
Impact on XRP and the broader crypto market
The settlement is expected to have a significant impact on XRP’s adoption and Ripple’s business operations.
One key outcome of the deal is the SEC’s agreement to request that the court drop the standard injunction against Ripple, allowing the company to resume its on-demand liquidity (ODL) sales without restrictions.
Legal experts believe Ripple strategically delayed settlement negotiations to push for a lower fine and ensure no regulatory restrictions would be placed on its future operations.
This outcome is being hailed as a major victory for the company and the broader crypto industry.
Ripple CEO Brad Garlinghouse recently expressed optimism about the company’s future, stating that its US operations are expected to expand in the coming months.
He also pointed to potential new crypto legislation that could provide clearer regulatory guidelines for the industry.
With this settlement, Ripple clears a major legal hurdle, setting the stage for greater institutional adoption of XRP and renewed momentum in the evolving landscape of cryptocurrency regulation.
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