Ripple and SEC Reach $50M Settlement, Ending Landmark XRP Case

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have reached a settlement that could officially end their high-profile legal battle, pending judicial approval. According to court documents filed in New York, Ripple has agreed to pay a $50 million penalty, significantly lower than the $125 million initially ordered and a fraction of the SEC’s original $2 billion demand.

The case began in 2020 under then-SEC Chair Jay Clayton, accusing Ripple of violating securities laws by selling XRP tokens to institutional investors. In 2023, U.S. District Judge Analisa Torres ruled that those institutional sales breached securities regulations, while XRP’s availability to retail investors on exchanges did not. The SEC, led at the time by Chair Gary Gensler, appealed the decision, prompting a cross-appeal from Ripple.

The latest agreement, filed on Thursday, confirms Ripple’s earlier statement from March that an in-principle deal had been reached. Both sides have now agreed to withdraw their appeals, closing one of the crypto industry’s most closely watched cases.

The settlement also signals a broader shift in U.S. crypto regulation. Since President Trump’s return to office and the appointment of crypto advocate Paul Atkins as SEC Chair, the agency has pulled back from aggressive enforcement tactics seen under the previous administration.

Following the news, XRP surged 9%, reflecting renewed investor optimism. The digital asset continues to show strength, boosted by the long-awaited legal resolution. Ripple did not immediately comment on the settlement.

This settlement marks a pivotal moment in crypto regulation, potentially setting a precedent for how digital assets are treated by U.S. authorities moving forward. With legal clarity improving, market participants may see this as a green light for broader crypto adoption.