Altcoins News

Story: Ripple and SEC Propose Final XRP Settlement With $50M Penalty, $125M Escrow Release

By Evie Vavasseur

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In a pivotal development in the long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), both parties have jointly requested that a…

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The proposed agreement, filed in the Southern District of New York on Thursday, outlines that Ripple will pay a $50 million civil penalty to the SEC.

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The SEC’s lawsuit, originally filed in December 2020, accused Ripple of conducting an unregistered securities offering by selling XRP tokens to institutional investors, raising $1.

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The legal battle drew global attention, impacting not just Ripple’s operations but the broader crypto landscape. Industry players have viewed the case as a bellwether for how U.S.

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In 2023, Ripple scored a partial legal victory when Judge Analisa Torres ruled that programmatic sales of XRP on public exchanges to retail investors did not qualify as…

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Originally, the SEC sought a hefty $2 billion penalty from Ripple, but after negotiations and shifting leadership within the agency, the figure was significantly reduced to $125…

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The joint motion filed by Ripple and the SEC not only proposes a $50 million settlement payment, but also requests the court to lift the injunction that has restricted Ripple’s…

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This motion must still receive approval from Judge Torres, who has presided over the case since its inception.

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Despite the past procedural rejection, both Ripple and the SEC have since taken steps to suspend their appeals, clearing a path for this final resolution.

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This latest move from the SEC represents a noticeable departure from its previously aggressive stance on crypto under former Chair Gary Gensler. Since the change in U.S.

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Several high-profile lawsuits initiated under the previous administration have been quietly dropped, suggesting a strategic shift in how the U.S.

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However, not everyone at the SEC is on board with this direction. In May 2025, Commissioner Caroline Crenshaw publicly criticized the agency’s retreat from aggressive crypto…

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Nonetheless, Ripple’s proposed settlement could serve as a blueprint for how similar cases may be resolved in a more negotiation-driven regulatory climate.

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While the legal wrangling in the U.S. has played out, Ripple has continued to make regulatory and operational strides globally.

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These international approvals offer a stark contrast to Ripple’s legal entanglements in the U.S.

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