After more than four years of litigation, Ripple Labs has officially settled its high-profile legal battle with the U.S. Securities and Exchange Commission (SEC), bringing one of the crypto industry’s most closely watched cases to a close. On Thursday, the SEC confirmed that Ripple, along with CEO Brad Garlinghouse and Executive Chairman Chris Larsen, will collectively pay $50 million to resolve the long-running dispute.
The settlement follows months of private negotiations and signals a dramatic departure from the SEC’s earlier enforcement posture. Under former Chair Gary Gensler, the agency had sought penalties exceeding $2 billion at the peak of the Biden administration’s crypto crackdown.
U.S. District Judge Analisa Torres—who has overseen the case since 2020—previously ordered Ripple to pay $125 million in penalties following a partial ruling against the company in 2024. Under the revised terms, Ripple will pay only $50 million to the SEC, while the remaining $75 million in escrowed funds is expected to be returned upon final court approval.
Ripple’s Legal Victory Highlights SEC’s Crypto Policy Shift
The Ripple-SEC case has become a cornerstone of the regulatory debate surrounding crypto assets in the United States. Initially filed in December 2020, the SEC’s lawsuit alleged that Ripple raised $1.3 billion through unregistered securities sales of its XRP token.
However, a pivotal 2023 ruling by Judge Torres significantly altered the trajectory of the case. In her opinion, the judge ruled that Ripple’s “programmatic” sales of XRP on public crypto exchanges—primarily to retail investors—did not constitute securities transactions. That decision was widely regarded as a landmark win for the crypto sector, establishing important legal precedent for how tokens are sold and classified.
The judge did, however, find that Ripple’s $728 million in direct XRP sales to institutional investors violated federal securities laws. That partial liability left Ripple exposed to penalties—now resolved through the newly finalized settlement.
New Administration, New Approach: SEC Backs Off Under Trump-Era Leadership
Ripple’s settlement coincides with a broader shift in regulatory tone. Since President Donald Trump’s return to office in January, the SEC—now under Chair Paul Atkins—has adopted a more measured approach toward digital assets. Several ongoing enforcement actions have been either reversed or paused, as the agency pivots toward encouraging innovation while maintaining investor protection.
Trump’s campaign rhetoric included strong support for crypto development, and his administration has followed through with policy reversals aimed at scaling back what many in the industry saw as regulatory overreach.
Ripple’s native token, XRP—currently the fourth-largest cryptocurrency by market capitalization—jumped over 8% following the settlement news. As of Thursday evening, XRP was trading at $2.30, according to CoinGecko, signaling renewed investor confidence amid long-awaited legal clarity.
Quick Facts
- Ripple has agreed to pay a $50 million civil penalty to the SEC as part of a final settlement.
- $75 million of a previously imposed $125 million penalty is expected to be returned upon court approval.
- The SEC initially filed the lawsuit in December 2020, accusing Ripple of unregistered securities sales through XRP.
- The resolution reflects a broader regulatory shift under SEC Chair Paul Atkins, aligned with the Trump administration’s pro-crypto stance.
- XRP’s price surged by more than 8% following the announcement, reaching $2.30.
