Nearly two months after Ripple CEO Brad Garlinghouse confirmed that the U.S. Securities and Exchange Commission (SEC) would not pursue an appeal, Ripple and the SEC have finalized a $50 million settlement, marking the official end of a legal battle that has spanned over three years.
The resolution, submitted to the court on May 8, brings closure to a lawsuit that has long cast a shadow over Ripple and the broader cryptocurrency industry.
Key Details of the XRP Settlement
As outlined in a joint court filing, Ripple will pay $50 million to the SEC—significantly reduced from the original $125 million penalty imposed by Judge Analisa Torres in 2024. The remaining $75 million will be returned to Ripple, along with the dissolution of an injunction and the release of $125 million in escrowed funds.
Both parties also agreed to drop their respective appeals: the SEC will abandon its challenge, and Ripple will withdraw its counter-appeal, fully ending the dispute.
From Lawsuit to Closure
The SEC first filed suit in December 2020, alleging that Ripple and its executives raised over $1.3 billion through unregistered securities sales of XRP. Ripple contested the claims, leading to a prolonged court battle that reached a pivotal moment in July 2023, when Judge Torres ruled that XRP was not a security in retail transactions, though it could be considered one in institutional sales.
This partial win for Ripple later resulted in a $125 million fine, but the case was reignited in January 2025 when the SEC appealed the court’s split decision. Ripple responded with a cross-appeal, escalating the fight until regulatory leadership changes signaled a possible shift in tone from the SEC.
What Happens Next?
Legal expert James K. Filan noted that Judge Torres must first issue an indicative ruling approving the terms. Upon her approval, Ripple and the SEC will seek a limited remand from the Second Circuit Court of Appeals to finalize the deal. Once that occurs, the injunction will be lifted, funds will be released, and all appeals will be formally dismissed.
XRP Market Reaction
The XRP market responded swiftly to the news, with the token jumping 5.2% to $2.29 over the past 24 hours. Though it slightly underperformed the broader crypto market’s weekly gains, XRP remains a standout performer year-over-year, boasting a 340% increase.
The XRP community celebrated the conclusion of the high-profile case, with pro-Ripple attorney John E. Deaton summarizing the mood with a simple post on X:
“It’s over.”
