Alright, the legal battle is over. The drama dragging on for over four years, casting a shadow over Ripple, just ended.
The curtain’s finally coming down. Ripple and the U.S. Securities and Exchange Commission have struck a deal, a $50 million settlement that cuts the original $125 million penalty by more than half.
Deal
The agreement, filed in court on May 8, asks Judge Analisa Torres in New York to lift the injunction that’s been hanging over Ripple’s head and release $125 million held in escrow.
Ripple pays the SEC $50 million, keep in mind, this was once a $2 billion fine in the SEC’s wildest dreams, and gets the remaining $75 million back.
Both sides agree to drop their appeals, calling it a day on this story.
Now, rewind to December 2020. The SEC accused Ripple and its top executes, Brad Garlinghouse and Chris Larsen, of raising over $1.3 billion by selling XRP without registering it as a security.
Ripple pushed back hard, sparking a legal tug-of-war that peaked in July 2023 when Judge Torres ruled XRP wasn’t a security for retail buyers but was for institutional sales.
That split decision led to Ripple getting slapped with a $125 million fine in August 2024.
Judgement
But the SEC wasn’t done, oh no, they appealed in January 2025, arguing there shouldn’t be a difference between retail and institutional XRP sales. Ripple fought back with its own counter-appeal.
The drama kept the crypto industry on edge. Then came the shake-up at the SEC. Gary Gensler, the tough-as-nails chair, left, and crypto-friendly Paul Atkins stepped in. Suddenly, whispers started that the SEC might just throw in the towel.
Ripple’s CEO Brad Garlinghouse confirmed the SEC dropped its appeal, and now the settlement is official, pending Judge Torres’ final nod.
What’s next? Judge Torres has to give the green light. If she does, the injunction lifts, Ripple gets its $75 million back, and both parties walk away clean. No more appeals. No more courtroom battles. Just peace.
Make it rain
The market? XRP’s price jumped about 5% in 24 hours, hitting around $2.29. Not a moonshot, but hey, after years of uncertainty, even a modest rally feels like a victory lap.
Over the past year, XRP’s up 340%, making it one of the crypto world’s strongest performers.
For XRP holders, this feels like Christmas morning after a long, cold winter. The SEC’s retreat signals a softer stance on crypto regulation, at least for now.
Ripple dodged a bullet, paying a fraction of the initial fine and walking away with a win. Finally.
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