XRP News Today: Ripple vs SEC Fight Officially Ends with $50 Million Payout

Ripple has officially ended its appeal against the U.S. Securities and Exchange Commission (SEC) after paying $50 million of the $125 million fine related to the long-running lawsuit.

According to a detailed statement posted by Stuart Alderoty, Ripple’s Chief Legal Officer, the remaining $75 million, which was held in an interest-bearing escrow account, has been returned to the company. The SEC has also agreed to withdraw its appeal, officially closing the case that began in December 2020 under former SEC Chairman Jay Clayton.

Ripple vs SEC: End of a Long Legal Battle

Stuart Alderoty stated on X, “The final settlement of all details—and what should be my last update on SEC v. Ripple forever. Last week, the SEC unconditionally agreed to withdraw its appeal. Ripple now agrees to withdraw its cross-appeal.

“The SEC will keep $50 million of the $125 million fine (which was already held in an interest-bearing escrow in cash), with the remainder returned to Ripple. The agency will also request the Court to lift the standard order previously imposed at the SEC’s request. All of this is subject to Commission voting, final document drafting, and standard court procedures. That’s it, folks!”

The case accused Ripple of raising $1.3 billion through unregistered sales of XRP, the company’s native token, which the SEC attempted to classify as a security. This lawsuit was one of the largest enforcement actions targeting a crypto company, filed on Clayton’s last day in office. The lawsuit lasted four years, with Ripple spending $150 million in legal fees to fight back.

Also Read: Ripple - How Will the XRP ETF Shape Up After Delay?

Ripple Wins, SEC Backs Down, and Crypto Lawsuits Crumble

On Wednesday, Ripple confirmed that the SEC had completely dropped the case. This decision came after the agency lost several key court battles, including a July 2023 ruling that XRP is not necessarily a security. The court found that programmatic sales of XRP on public exchanges did not meet the legal definition of a securities offering.

Ripple now frames this case as a turning point. Speaking to CNBC, Stuart Alderoty said, “Ripple stands alone as the company that fought—and won—on critical legal questions, throwing a major wrench into the SEC’s plans to crush crypto in the U.S. through enforcement. The SEC has now abandoned its appeal in our case. In an ironic twist, Ripple was the first major case they filed, and now it will be the last one they drop.”

The lawsuit also personally targeted Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. These charges were dropped last year after the court rejected most of the SEC’s core arguments. The agency also attempted to subpoena foreign regulators, investigate Ripple’s partnerships, and pull documents from entities working with Ripple.

Also Read: Ripple vs SEC: Court Must Overturn Flawed Ruling on XRP

Current XRP Price

The announcement caused XRP to surge 11% within hours, as investors reacted positively to the legal resolution. Ripple is now moving forward without the threat of an injunction. The SEC has stated that it will request the court to officially lift previously imposed orders.

Founded in 2012, Ripple was one of the first companies to offer a non-Bitcoin cryptocurrency. Its founders launched XRP as the native asset for the Ripple network, designed to facilitate faster cross-border payments. Over the years, XRP has become a popular token among retail investors, with Ripple maintaining that its sales never violated securities laws.

SEC Policy Shift and Trump’s Support for Crypto

Under former Chairman Gary Gensler, the SEC ramped up crypto enforcement, filing cases against several platforms, including Coinbase, Kraken, Binance, Robinhood, and OpenSea. However, since 2024, many of these cases have been dropped, paused, or quietly settled. The Coinbase case ended in February. The Wells notice against Robinhood was withdrawn. The Binance investigation was paused. The Kraken case was also dismissed.

Ripple’s court victory does more than resolve one company’s legal troubles—it also pushes back against the SEC’s strategy of policing crypto through lawsuits. 

This victory has helped shift momentum at the federal level, with crypto companies now finding greater support under the new administration of President Donald Trump. Trump, who returned to office in January 2025, has shifted from being a crypto skeptic to a vocal supporter.

At the 2024 Bitcoin Conference, Trump declared that he would ensure the U.S. becomes “the crypto capital of the planet and the world’s bitcoin superpower.” His campaign has received financial backing from Ripple and other crypto firms. 

Since taking office, Trump has appointed tech investor David Sacks as his AI and crypto czar, and the White House has signed an executive order on digital assets with Sacks standing alongside Trump. David attended the Crypto Ball after the inauguration and stated, “The war on crypto is over.”

U.S. Crypto Regulation Shift: SEC Softens Stance, Big Banks Reenter Digital Assets

The SEC has also begun changing its approach. On Friday, the agency held its first major crypto roundtable. Hester Peirce, a longtime critic of Gensler’s enforcement-driven approach, now leads the SEC’s new Crypto Task Force. Her strategy focuses on building regulations with the industry rather than fighting it in court.

Peirce also overturned Staff Accounting Bulletin 121, a 2022 rule that forced banks to treat crypto holdings as liabilities. This policy, pushed by Gensler, was a major roadblock for crypto adoption in traditional finance. After revoking the rule in January, Peirce posted on X, “Goodbye, SAB 121! That wasn’t fun.”

Big banks are already responding to the shift. During the World Economic Forum in Davos, executives from Goldman Sachs, Morgan Stanley, and Bank of America hinted at returning to the crypto space, encouraged by signs that regulators are finally stepping back.

Also Read: XRP Price Prediction If SEC Drops Lawsuit, Up to 200%?

Ripple Perspective on Legal Issues

Ripple’s legal team has consistently argued that the SEC was not trying to protect investors. Instead, they believe the agency used legal pressure to cripple the industry. They claim subpoenas, personal lawsuits, and international coordination were tactics designed to weaken crypto companies.

Now, with the case officially closed, Ripple says it is here to stay. “As this chapter closes, the fight for clear, fair, and transparent crypto regulation continues,” Stuart Alderoty told CNBC. “Ripple will keep leading that fight.”

FAQ

1. How much did Ripple pay the SEC in fines?
   Ripple paid $50 million out of a total $125 million fine.
   
    
2. What was the final outcome of the SEC lawsuit against Ripple?
   The SEC withdrew its appeal, officially ending the case.
   
    
3. How did the decision impact XRP’s price?
   XRP surged 11% within hours of the announcement.
   
    
4. What are the broader implications of this decision for the crypto industry?
   Ripple’s victory is seen as a turning point in U.S. crypto regulation, signaling a shift away from aggressive enforcement actions.
   
    
5. How has the Trump administration changed its stance on crypto?
   The Trump administration has shown greater support for the crypto industry, appointing pro-crypto figures and implementing regulatory policy changes.
   
    
6. What’s next for Ripple?
   Ripple will continue advocating for clear and fair crypto regulations.