Ripple Labs and the US Securities and Exchange Commission (SEC) have finalized a settlement in their legal conflict that commenced in December 2020. On March 25, 2025, Ripple announced it would pay a penalty of $50 million and has dropped its cross-appeal against the SEC, while the SEC will keep funds currently held in escrow.

In July 2023, a ruling by Judge Torres specified that XRP sales to retail clients did not classify as securities, except for institutional buyers, resulting in a significantly reduced fine of $125 million, far less than the SEC’s initial ask of $1.9 billion. This injunction had previously barred Ripple from selling XRP to institutional clients.

Both parties have now consented to dismiss their appeals, effectively sealing the resolution of this case.

“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 escrow).”
— Stuart Alderoty (@s_alderoty) March 25, 2025

This case was crucial for the crypto industry, potentially impacting how digital assets are classified and regulated in the future.

Ripple’s CEO, Brad Garlinghouse, indicated that the SEC’s willingness to withdraw its case signals a new opportunity for Ripple to expand its influence in the US market.

In a related development, Ripple’s CTO, David Schwartz, noted that while the victory is significant, the legal obligations of the company remain unchanged. He stated that Ripple must still comply with existing legal frameworks, regardless of the injunction’s removal.

Ripple is now strategizing to grow its footprint within the US, capitalizing on evolving regulations and a more crypto-conducive environment under President Trump’s administration. Furthermore, as traditional banks start to embrace crypto services, Ripple has a unique chance to collaborate on cross-border payment solutions involving its XRP token.

Despite the legal triumph, market reactions have been muted, indicating that the result was largely anticipated after a prolonged saga.

Key Highlights:

• Ripple has settled with the SEC, agreeing to pay $50 million, concluding a long-running legal dispute since December 2020.
• The focus shifts towards US market growth for Ripple, as favorable regulations emerge under the new administration.
• Ripple’s CTO reiterated that existing legal obligations must still be honored, even with the lifting of the SEC’s sales injunction.