After more than four years of legal battles, Ripple Labs is officially closing the chapter on its lawsuit with the U.S. Securities and Exchange Commission (SEC).
In what may be the final update on the case, Ripple Chief Legal Officer Stuart Alderoty announced that the company will drop its cross-appeal and secure a $75 million refund from a prior judgment.
Despite the positive development, XRP’s price has yet to jump in the daily chart. At the time of this publication, the price had little change in the daily chart at $2.45, despite an 8% rise in the weekly chart.
Ripple and SEC Drop Appeals, Finalizing Settlement
Ripple’s legal team confirmed that the firm will withdraw its cross-appeal against the SEC in the U.S. Court of Appeals for the Second Circuit. The August 2024 ruling from the Southern District of New York, which found Ripple liable for $125 million, will stand.
The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever…
Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an…
Mar 25, 2025
However, instead of paying the full amount, the SEC will retain only $50 million in escrow, while Ripple will receive a refund of the remaining balance. The agency will also request the court lift a previously imposed injunction, finalizing the case’s resolution.
Alderoty stated that all agreements are subject to final documentation, court approval, and an official vote by the SEC commissioners. The move followed last week’s announcement from Ripple CEO Brad Garlinghouse that the SEC had decided to drop its appeal over the judgment, signaling a mutual resolution between both parties.
The SEC’s lawsuit against Ripple, first filed in December 2020, was one of the longest-running enforcement actions against a major U.S. crypto firm. The agency had accused Ripple of raising $1.3 billion through the sale of its XRP token without registering it as a security.
The legal battle reportedly cost Ripple an estimated $150 million in legal fees, but it also set a major precedent for the crypto industry. Ripple emerged as one of the few crypto firms that challenged the SEC’s enforcement approach—and won on key legal questions.
XRP Daily Chart, Source: CoinMarketCap
Political and Regulatory Implications
With the SEC withdrawing its appeal and settling with Ripple, the agency’s broader approach to crypto regulation appears to be shifting. On March 27, the Senate Banking Committee is set to consider the nomination of former SEC Commissioner Paul Atkins as the agency’s next chair.
Atkins, known for his more industry-friendly stance, is expected to face questions on his regulatory approach and potential conflicts of interest. As Ripple closes the book on its legal fight with the SEC, the crypto industry is watching closely to see how regulatory policy evolves under new leadership.
