- Ripple and the SEC have settled their $1.3 billion lawsuit with Ripple agreeing to pay a $50 million fine.
- XRP’s price surged 8.7% following the settlement, marking a significant victory for Ripple.
After years of legal battles, Ripple and the U.S. Securities and Exchange Commission (SEC) have officially settled their $1.3 billion lawsuit with a much lower-than-expected penalty of $50 million. This settlement comes after a partial ruling in 2023 and marks the end of a long legal struggle that began in 2020.
A Major Win for Ripple
Ripple’s decision to settle has been seen as a significant victory. Initially, the SEC had sought a hefty $2 billion fine, with a $125 million penalty imposed last year by the court. However, the final settlement is only a fraction of that amount, totaling just $50 million. The news of the settlement has had an immediate impact on XRP’s price, which surged 8.7% in just 24 hours, reaching $2.31.
This case revolved around the SEC’s claim that Ripple had raised capital by selling unregistered XRP tokens, thus violating U.S. securities laws. In 2023, the court found that Ripple had violated securities laws by selling XRP to institutions but allowed retail exchange sales. This partial ruling set a crucial legal precedent, especially as cryptocurrency regulations continue to evolve.
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A Shift in SEC’s Approach to Crypto
The settlement also highlights a shift in the SEC’s stance toward cryptocurrencies under the Trump administration, which has been more lenient on crypto firms. Many analysts had anticipated a settlement as the SEC adjusted its approach to crypto-related cases. With the new direction in place, several other crypto disputes have been either settled or dropped altogether.
It’s over. https://t.co/cSkiIDDkuF
— John E Deaton (@JohnEDeaton1) May 8, 2025
While this development may offer Ripple relief, it was not entirely smooth sailing. The case saw several back-and-forth negotiations, even after Ripple’s CEO Brad Garlinghouse had initially declared that the case was nearing its end. The long-standing legal saga is now officially over, for now.
SEC Commissioner Opposes the Settlement
Some SEC officials openly criticized the outcome, even after the case concluded. SEC Commissioner Caroline Crenshaw has strongly criticized the settlement, claiming that it undermines legal precedent and investor protection. In a dissenting opinion, Crenshaw argued that the deal effectively erases years of legal work and leaves investors exposed, damaging the SEC’s role in regulating securities. According to Crenshaw, the settlement “razes” the impact of the court’s previous ruling and fails to uphold the law’s integrity.
The Ripple-SEC case has been one of the most closely followed legal battles in the crypto world, and its resolution marks a pivotal moment for the industry as a whole. With Ripple now free from the lawsuit’s heavy burden, the cryptocurrency market can expect continued shifts in regulatory approaches and the future of digital assets.
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