The SEC and Ripple have agreed to a $50 million settlement to end a long-running lawsuit.
$XRP
The agreement, outlined in a joint filing with the court, requires New York Judge Analisa Torres to lift the existing injunction against Ripple and release $125 million held in escrow. Under the terms, the crypto company will pay the SEC $50 million, which represents a portion of the original fine imposed by Judge Torres, and the remaining $75 million will be returned to it.
The deal also guarantees that the regulator and the payment company will drop their appeals: the former will drop its appeal and the latter will withdraw its cross-appeal.
The saga began in December 2020, when the SEC filed a lawsuit against Ripple and two of its top executives, Chris Larsen and Brad Garlinghouse, for allegedly raising more than $1.3 billion through an unregistered securities offering by selling Ripple’s own XRP token.
Ripple challenged the allegation, leading to a lengthy legal battle that peaked in July 2023 when Judge Torres ruled that XRP is not a security when sold to retail investors, but qualifies as such for institutional sales.
As a result, the company was fined $125 million in August 2024 for selling unregistered securities to institutional investors. However, the U. S. Securities and Exchange Commission appealed the decision in January 2025. It argued that XRP transactions should not be treated differently between institutional and retail sales, prompting Ripple to file its own cross-appeal.
After changes at the SEC, including the departure of uncompromising chairman Gary Gensler, there were reports that the financial watchdog would drop its appeal. However, there has been no official statement from the agency on the matter.
According to attorney James C. Filan, Judge Torres must issue a preliminary ruling approving the proposed terms before the agreement can be finalized. If she does so, Ripple and the SEC will seek a limited remand from the Second Circuit Court of Appeals to formally put the agreement into effect.
Once the agreement is approved, the injunction against the cryptocurrency company will be lifted, the pledged funds will be distributed, and both sides will stop filing appeals, officially ending the court drama.
Disclaimer:
I am not a financial advisor. This content is for informational and educational purposes only.
Do your own research (DYOR)
#xrp
The agreement, outlined in a joint filing with the court, requires New York Judge Analisa Torres to lift the existing injunction against Ripple and release $125 million held in escrow. Under the terms, the crypto company will pay the SEC $50 million, which represents a portion of the original fine imposed by Judge Torres, and the remaining $75 million will be returned to it.
The deal also guarantees that the regulator and the payment company will drop their appeals: the former will drop its appeal and the latter will withdraw its cross-appeal.
The saga began in December 2020, when the SEC filed a lawsuit against Ripple and two of its top executives, Chris Larsen and Brad Garlinghouse, for allegedly raising more than $1.3 billion through an unregistered securities offering by selling Ripple’s own XRP token.
Ripple challenged the allegation, leading to a lengthy legal battle that peaked in July 2023 when Judge Torres ruled that XRP is not a security when sold to retail investors, but qualifies as such for institutional sales.
As a result, the company was fined $125 million in August 2024 for selling unregistered securities to institutional investors. However, the U. S. Securities and Exchange Commission appealed the decision in January 2025. It argued that XRP transactions should not be treated differently between institutional and retail sales, prompting Ripple to file its own cross-appeal.
After changes at the SEC, including the departure of uncompromising chairman Gary Gensler, there were reports that the financial watchdog would drop its appeal. However, there has been no official statement from the agency on the matter.
According to attorney James C. Filan, Judge Torres must issue a preliminary ruling approving the proposed terms before the agreement can be finalized. If she does so, Ripple and the SEC will seek a limited remand from the Second Circuit Court of Appeals to formally put the agreement into effect.
Once the agreement is approved, the injunction against the cryptocurrency company will be lifted, the pledged funds will be distributed, and both sides will stop filing appeals, officially ending the court drama.
Disclaimer:
I am not a financial advisor. This content is for informational and educational purposes only.
Do your own research (DYOR)
#xrp
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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