XRP News Today: Ripple SEC Settlement Nears Approval With $50 Million Penalty

In a recent development, a post by X user Karla160 suggested that Ripple and the U.S. Securities and Exchange Commission (SEC) had proposed a $50 million settlement and were seeking court approval to lift the ban on institutional XRP sales. This claim quickly gained traction within the XRP community, but legal expert Bill Morgan stepped in to clarify the situation.

Morgan corrected the misconception by stating that the settlement agreement was not just proposed but had already been signed by Ripple in April and approved by the SEC in early May. The only remaining step is judicial approval by U.S. District Judge Analisa Torres. This clarification highlighted that the settlement process was more advanced than initially reported.

The $50 million figure mentioned in various posts and headlines refers to Ripple’s finalized civil penalty as part of a larger escrow structure. In August 2024, Judge Torres ordered Ripple to place $125 million in escrow following her ruling that institutional sales of XRP constituted unregistered securities offerings. By April 2025, after extensive negotiations, Ripple proposed a significantly lower fine of $10 million. However, both parties ultimately agreed to a $50 million penalty, which Ripple will pay out of the escrowed funds. The remaining $75 million will be returned to Ripple. This resolution does not involve any new or additional payment by Ripple; it is a reallocation of the existing escrow.

The settlement also includes a request to lift the injunction that currently restricts Ripple from conducting institutional sales of XRP. If approved by the court, this would allow Ripple to resume those activities under clearly defined legal parameters.

Another key aspect of the legal narrative involves the SEC’s previous attempt to challenge Judge Torres’s July 2023 ruling. That ruling declared that Ripple’s programmatic sales of XRP, that is, those conducted via public exchanges to retail investors, did not constitute securities transactions. The court only found violations in institutional sales, which involved direct sales to sophisticated investors. In October 2024, the SEC filed a notice of appeal, aiming to overturn portions of the ruling, including the programmatic sales judgment. However, in a significant reversal, the agency withdrew its appeal in March 2025, effectively conceding that programmatic XRP sales fall outside the scope of securities regulation. Ripple, in turn, dropped its cross-appeal.

Now, all eyes are on Judge Torres, who must decide whether to approve the terms of the settlement. A favorable ruling could mark the end of a legal battle that began in December 2020 and has since shaped the broader regulatory landscape for digital assets in the U.S. Bill Morgan’s timely correction underscores the importance of legal accuracy and informed analysis, particularly in high-profile crypto litigation. With the SEC no longer contesting Ripple’s retail XRP sales and the $50 million institutional penalty heading toward final approval, Ripple appears poised to close one of the most consequential chapters in its corporate history.