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SEC Files $50M Settlement with Ripple Over XRP Case

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sec settlement 50m ripple case
Key Points:

  • SEC and Ripple settle XRP lawsuit for $50 million.
  • Settlement marks end of legal dispute since 2020.
  • Potential positive precedent for similar cases.

sec-files-50m-settlement-with-ripple-over-xrp-case
SEC Files $50M Settlement with Ripple Over XRP Case

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have reached a settlement to conclude their longstanding XRP lawsuit, filed with the Southern District of New York on May 8, 2025.

The settlement ends a key legal dispute affecting Rippleโ€™s future operations and regulatory clarity in the cryptocurrency industry. XRPโ€™s market activity shows increased optimism following the agreement.

The legal battle began in December 2020, with the SEC accusing Ripple Labs, CEO Bradley Garlinghouse, and Christian Larsen of conducting an unregistered securities offering through XRP sales, demanding $2 billion in penalties. The agreement includes a $50 million penalty, significantly lower than the SECโ€™s original demand. Ripple receives back over $75 million held in escrow.

The initial lawsuit impacted market dynamics significantly, with XRP experiencing volatility. The settlement brought stability, leading to a 6% increase in XRPโ€™s price within 24 hours. Market analysts project further potential growth for XRP as the case concludes.

Innovation in the crypto industry has been stifled for many years,โ€ stated Paul Atkins, SEC Chair, โ€œand promised to provide a firm regulatory foundation for digital assets, which removes uncertainty while fostering innovation.

Newly appointed SEC Chair Paul Atkins has signaled a shift in regulatory strategy, suggesting this settlement might influence future crypto-related enforcement actions by the SEC. The resolution offers the possibility of broader regulatory impact, especially under new leadership priorities.

Judge Analisa Torres previously ruled that Rippleโ€™s institutional sales violated securities laws, while programmatic sales to retail clients did not. This legal clarity may influence other crypto-related cases, shaping future regulatory landscapes across the industry.

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