Ripple Settles the US SEC Case, Agrees to Pay $50M of $125M SEC Fine

The $125 million fine was imposed by Judge Analisa Torres in August 2024 for unauthorized transactions Ripple made as part of XRP token's institutional sales. 

When the lawsuit was filed in December 2020, the SEC sought a $2 billion penalty, claiming Ripple violated US federal law by selling XRP tokens to institutional investors as an unregistered security in 2013.

However, based on the final agreement, Ripple will pay $50 million and receive a $75 million refund from the August decision. 

After over four years of legal battles, the US SEC withdrew its appeal against Ripple on March 19, 2025. With both parties dropping their appeals, the central issue – whether XRP is a security – has been resolved.

As part of the Ripple SEC settlement, the agency will also seek to lift the standard injunction it had previously imposed. This will depend on a Commission vote, finalizing documents, and following the usual court processes.

What Does the Ripple SEC Settlement Mean for XRP Holders?

The Ripple SEC settlement brings much-needed clarity to the ongoing legal battle over XRP’s status as a security. With both the SEC and Ripple dropping their appeals, XRP holders are likely to experience less uncertainty and volatility regarding the token's legal status.

At the time of writing, XRP is trading at around $2.46, up approximately 7% in the last 7 days. It is the 4th largest cryptocurrency, with a market cap of over $143 billion.

According to Bloomberg estimates, Ripple spent over $150 million on legal defense, covering many complex steps and motions.

This investment paid off, with Ripple CEO Brad Garlinghouse stating that the company’s victory is also a win for the entire crypto industry. It marks a key step in the SEC’s ongoing efforts to regulate the space under former Chair Gary Gensler.

With Donald Trump’s presidency and a more crypto-friendly administration in the US, clearer regulations for the industry are expected. But as with any legal battle in the crypto world, the road to regulatory clarity is always full of twists and turns.