XRP News Today: Ripple Settles With SEC For $50 Million, Ends Legal Battle
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have reached a significant settlement agreement that, if approved by a judge, will conclude their protracted legal dispute. The agreement, filed in New York on Thursday, stipulates a $50 million penalty. This amount is a fraction of the $125 million fine initially imposed by Judge Analisa Torres of the Southern District of New York (SDNY) and a minuscule portion of the $2 billion fine initially sought by the SEC.
Judge Torres' 2023 ruling determined that Ripple had violated securities laws by selling its native XRP token to institutional investors. However, she ruled that Ripple did not violate securities laws when it listed XRP on exchanges for retail customers to purchase. The original lawsuit was filed in 2020 under the leadership of then-SEC Chair Jay Clayton, who is now the Acting U.S. Attorney for the Southern District of New York.
The SEC, under the leadership of former Chair Gary Gensler, appealed Torres’ ruling, leading Ripple to file a cross-appeal. The settlement agreement specifies that both parties will drop their respective cases. This filing confirms Ripple’s March announcement that it had reached an in-principle settlement agreement with the SEC.
The settlement occurs as the SEC scales back its extensive crypto investigations and litigation, which began under Gensler’s tenure. Following the appointment of crypto-friendly Paul Atkins as the SEC’s new chairman by U.S. President Donald Trump in January, the agency has shifted its stance on crypto regulation.
