XRP News Today: Ripple Agrees $50 Million Penalty in SEC Settlement

Ripple's protracted legal dispute with the U.S. Securities and Exchange Commission (SEC) has reached a critical juncture with the finalization of a $50 million civil penalty. Legal expert Bill Morgan confirmed that the settlement was signed by Ripple in April and approved by the SEC in May, contrary to online claims suggesting otherwise. The settlement process involves obtaining the approval of U.S. District Judge Analisa Torres, who will review the proposal and provide the necessary green light.

In August 2024, Judge Torres directed Ripple to place $125 million in escrow following her ruling that Ripple had engaged in unregistered security sales through institutional sales of XRP. The $50 million penalty is part of a broader financial plan that includes this escrow arrangement. Initially, Ripple offered to pay a $10 million penalty but ultimately agreed to the higher amount of $50 million. The escrow account will cover the penalty, with the remaining $75 million returning to Ripple.

Beyond the financial settlement, the agreement includes a request to lift the injunction that currently restricts Ripple from selling XRP to institutional investors. If approved by the court, Ripple would be able to resume these sales under clearly defined legal terms. This move could significantly impact Ripple's business operations and its relationships with institutional partners, providing greater flexibility in dealing with regulated investors within the bounds of the law.

The SEC has also dismissed its appeal of Judge Torres’s decision from July 2023, which found that Ripple’s programmatic XRP sales to retail investors via exchanges were not securities transactions. In March 2025, the SEC withdrew its appeal, and Ripple withdrew its cross-appeal in response. With both sides agreeing not to appeal further and the penalty deal approved by Judge Torres, this case, which has shaped crypto regulations in the U.S. since December 2020, may finally come to an end.