Advertisement
Ripple and SEC Finally Call Off $1.3 Billion XRP Suit with $50 Million Settlement
- Ripple and the SEC have officially settled their years-long legal dispute, with Ripple agreeing to pay a US$50M penalty—far below the initial US$2B fine and even less than last year’s US$125M court-imposed amount.
- The lawsuit, which began in 2020, centered on whether XRP sales constituted unregistered securities offerings; the final resolution follows a partial 2023 ruling and reflects the SEC’s softened crypto stance under the Trump administration.
- SEC Commissioner Caroline Crenshaw criticised the deal, claiming it undermines legal precedent and investor protection, while XRP surged 8.7% on news of the settlement.
After a lot of back and forth, Ripple Labs and the US Securities and Exchange Commission (SEC) have finally called a truce.
According to a court filing on Thursday, the two sides reached a settlement that would see Ripple pay a US$50M (AU$78M) penalty, well below the original US$2B (AU$3.13B) fine the SEC sought and even less than the US$125M (AU$195M) Judge Analisa Torres imposed last year.
So you could call it a win for Ripple, and XRP is surging fast. Data shows the token gained 8.7% in the last 24 hours, currently trading at US$2.31 (AU$3.60).
It’s Over (This Time For Real)
The SEC’s case against Ripple began back in 2020, when the agency accused the firm of raising capital through unregistered XRP sales.
A federal court partially sided with the SEC in 2023, ruling that while XRP’s institutional sales violated securities laws, retail sales through exchanges did not. The ruling was hailed as a landmark in the ongoing tug-of-war between regulators and crypto firms.
But it wasn’t until 2025 when the Trump administration came in, and many expected a settlement between the two parties. This, of course, has to do with the change in direction and the agency’s new approach towards cryptocurrencies, which resulted in many cases being settled or outright dropped.
It wasn’t all smooth sailing. Both parties went back and forth many times, even after Ripple’s CEO, Brad Garlinghouse, announced that the case was over (spoiler alert, it was not, there was still a lot of work to do).
SEC Commissioner Fires Back
But the SEC’s truce with Ripple hasn’t landed well with everyone, especially not within its own ranks.
Commissioner Caroline A. Crenshaw is publicly torching the agency’s settlement with Ripple, accusing it of erasing years of legal work and leaving investors exposed in the process. In a sharply worded dissent, Crenshaw said the deal “razes” the impact of the court’s ruling and allows Ripple to walk away virtually unscathed.
This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws.
SEC Commissioner Caroline A. Crenshaw Advertisement
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
