Ripple and the U.S. Securities and Exchange Commission (SEC) have officially ended their prolonged legal battle, with both parties agreeing to withdraw their remaining appeals. The resolution, announced by Ripple’s Chief Legal Officer Stuart Alderoty, marks the conclusion of a case that has significantly impacted the cryptocurrency industry since its inception in 2020.
Alderoty stated that the SEC has dropped its appeal without conditions, while Ripple has agreed to withdraw its cross-appeal. As part of the settlement, the SEC will retain $50 million of the previously imposed $125 million fine, which had been placed in an interest-bearing escrow account. The remaining amount will be returned to Ripple.
Part of the CLO’s tweet read: “The agency will also ask the Court to lift the standard injunction that was imposed earlier at the SEC’s request. All subject to the Commission vote, drafting of final documents, and usual court processes.”
End of a High-Profile Legal Battle
The case began in December 2020 when the SEC accused Ripple of unlawfully selling XRP as an unregistered security. Ripple challenged the allegations, arguing that XRP should not be classified as a security and that the SEC had not provided clear regulatory guidance. The lawsuit led to years of legal disputes and industry debate over cryptocurrency regulations in the United States.
A series of court rulings throughout 2023 and 2024 partially favored Ripple, with a judge determining that certain XRP transactions did not constitute securities offerings. However, Ripple was still required to pay penalties related to institutional XRP sales. The latest agreement officially brings the case to a close, eliminating any remaining legal uncertainties for Ripple and its XRP token.
Broader Implications for the Crypto Industry
The resolution of SEC v. Ripple is expected to have broader implications for the cryptocurrency sector, particularly regarding regulatory clarity for digital assets. The case has been closely watched as a key legal precedent in determining how cryptocurrencies should be classified under U.S. securities laws.
While the settlement does not establish a definitive legal framework for digital asset regulation, it highlights ongoing tensions between crypto firms and regulatory authorities. Market participants will likely continue seeking clearer guidelines from policymakers and regulators in the aftermath of the Ripple case.
With this chapter closed, Ripple can shift its focus away from legal battles and toward business growth while the SEC’s approach to crypto enforcement remains under scrutiny.
