XRP News Today: Ripple Settles With SEC For $125 Million, Commissioner Calls It Regulatory Retreat

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have officially reached a settlement in their years-long legal battle. The deal includes a $125 million penalty paid by Ripple and the return of $75 million from escrow. The court still needs to approve several final steps. Judge Torres must decide whether to lift the injunction and allow escrow funds to be distributed—$50 million to the SEC, and the remaining $25 million back to Ripple. Once approved, both sides will request the appeals court to remand the case for official closure. Following that, Ripple and the SEC will move to end their pending appeals. If these steps are completed, one of the most high-profile cases in crypto history will officially close.

However, not everyone in the SEC is on board with the settlement. Commissioner Caroline Crenshaw publicly dissented, calling the settlement a “regulatory retreat” and a threat to investor protection. “This isn’t a settlement I can support,” said Crenshaw. “Ripple walks away with a reduced penalty and freedom to sell XRP. That’s not a win. That’s a retreat.” Crenshaw emphasized that Ripple was found guilty of illegal institutional XRP sales, yet received what she describes as a “free pass.”

Crenshaw’s dissent highlights growing divisions within the SEC. She warned that the deal sets a dangerous precedent, potentially weakening future crypto enforcement. Her statement called for judicial scrutiny of the settlement and warned it could damage public trust in the regulator. While Ripple celebrates, the broader crypto market is taking note of the SEC’s softened stance. The lifted injunction on XRP could lead to broader market optimism, but Crenshaw’s comments raise concerns about the future of U.S. crypto regulation.