Ripple Settles with SEC for $50M—Yet the Verdict Doesn’t Satisfy All
Ripple’s long-running clash with the SEC may be nearing resolution. A $50 million settlement is on the table—but it still needs Judge Torres’s approval, and some argue the deal lets key questions go unanswered.
After years of courtroom battles, Ripple Labs and the SEC have reached a tentative peace: a $50 million settlement, still awaiting the green light from a New York judge. As per the draft agreement filed on May 8, both parties will abandon further legal claims, and Ripple is set to recover more than $75 million from the initial $125 million figure.
The case, first filed in December 2020 under Jay Clayton’s SEC leadership, saw a partial resolution in 2023. Judge Analisa Torres ruled that Ripple’s XRP sales to institutional investors breached securities regulations—but its broader retail offerings did not.
Check this out: Ripple and SEC Enter 60-Day Legal Hiatus to Explore Settlement Options
From Crackdown to Compromise
During Gary Gensler’s tenure, the SEC took a hardline stance against leading crypto companies. That posture shifted with Donald Trump’s return to the presidency and the installment of Paul Atkins as the agency’s new chair. Since then, the SEC has begun dialing back, quietly closing out enforcement actions launched under the former administration.
Amid a back-and-forth of appeals from both Ripple and the SEC, the two parties have now landed on a final figure: $50 million. A steep drop from the $2 billion initially demanded and the $125 million decided by Judge Torres. With the new deal, Ripple is set to reclaim $75 million of the previously held funds.
Related: Ripple Settles the US SEC Case, Agrees to Pay $50M of $125M SEC Fine
The final chapter in the Ripple-SEC saga awaits a decision from Judge Torres. If she grants her approval, both parties will approach the Second Circuit to shut down the remaining appeals. Former federal prosecutor James Filan broke the news via X, noting the next legal step hinges entirely on the judge’s signal.
Crenshaw Pushes Back, Market Pushes Forward
SEC Commissioner Caroline Crenshaw expressed reservations about the deal:
This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws.
Read on: Ripple Donates $25M in RLUSD to Boost U.S. Classrooms Throughout 2025
Meanwhile, the market seemed to welcome the news. XRP—traded on exchanges like WhiteBIT—jumped over 9% in a single day, crossing the $2.40 mark. The rally came in tandem with a wider crypto upswing, with ETH alone climbing more than 25% over the same period.
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