The long-running legal battle between Ripple Labs and the U.S. SEC has reached a historic resolution. After years of litigation, the regulatory agency has agreed to drop its appeal, while Ripple will pay a $50 million fine significantly less than the original $125 million penalty.
As part of the agreement, Ripple will drop its cross-appeal, and the SEC will request that Judge Analisa Torres lift the injunction imposed on Ripple. This will mark a pivotal moment for the cryptocurrency industry.
This article breaks down the key developments, the timeline of events in this four-year-long tussle, and the implications of the settlement, incorporating official statements from Ripple’s leadership and legal team.
Key Terms of the Settlement
The final agreement, announced by the popular Fox Business News expert, Eleanor Terrett in a March 25 X post, includes the following terms:
#1. SEC Drops Appeal
The SEC will no longer pursue its appeal against Ripple, effectively ending the agency’s legal challenge.
#2. Ripple Pays $50M Fine
Of the originally ordered $125 million, Ripple will pay $50 million, with the remaining $75 million returned from an escrow account.
#3. Injunction Lifted
The SEC will ask Judge Analisa Torres to remove the “obey the law” injunction imposed on Ripple, allowing the company to operate without legal restrictions.
#4.Final Approval Pending
The settlement is subject to a final vote by the SEC and formal court approval.
Stuart Alderoty, Ripple’s Chief Legal Officer, took to the X community, highlighting the end of the legal contentions.
“The final crossing of t’s and dotting of i’s—and what should be my last update on SEC v Ripple ever…” said Alderoty.
Brad Garlinghouse, Ripple’s CEO, celebrated the decision as a major victory for the crypto industry, emphasizing that the case set a legal precedent for digital assets in the United States.
Timeline of the Ripple vs. SEC Case
December 2020: SEC Files Lawsuit
The SEC sued Ripple, alleging that XRP was an unregistered security. Notably, the lawsuit named Brad Garlinghouse (CEO) and Chris Larsen (Co-Founder) as defendants.
July 2023: Judge Torres’ Landmark Ruling
Judge Analisa Torres ruled that XRP is not a security when sold to retail investors on exchanges. However, she found that institutional sales of XRP violated securities laws.
October 2023: SEC Drops Charges Against Garlinghouse & Larsen
The SEC abandoned its case against Ripple’s executives, focusing solely on the company.
Late 2024 and Early 2025
Donald Trump campaigned as a pro-crypto candidate promising to make the US the crypto capital of the world with policy changes and end Gary Gensler’s administration.
With Trump’s success in the polls and the overhaul of the leadership at the SEC, many cases of the SEC vs crypto exchanges were dropped. The once stringent and restrictive Gensler administration had come to an end.
March 2025: Final Settlement Reached
The SEC dropped its appeal, and Ripple agreed to a $50 million settlement. Meanwhile, the “Obey the Law” injunction is set to be lifted, concluding the legal battle.
Ripple’s Reaction: A Victory for Crypto
In a March 19 post on Ripple’s official blog, Brad Garlinghouse called the settlement a “resounding victory” for Ripple and the broader crypto industry.
“This is it—the moment we’ve been waiting for. The SEC will drop its appeal—a win for Ripple, for crypto, and for regulatory clarity,” said the CEO.
Garlinghouse highlighted that the case set a precedent, confirming that XRP is not a security in most contexts. He also emphasized Ripple’s strengthened position moving forward, with plans to expand globally and continue innovating in blockchain payments.
Stuart Alderoty also added, “Today, Ripple moves forward—stronger than ever. This landmark case set a precedent for the domestic crypto industry.”
What This Means for the Crypto Industry
1. Regulatory Clarity for XRP & Crypto:
The ruling solidifies XRP’s status as a non-security in secondary market sales. Other crypto projects may use this case as a reference point when dealing with regulators.
2. SEC’s Enforcement Strategy Under Scrutiny:
The SEC’s loss in this case may lead to more cautious enforcement against crypto firms. Meanwhile, calls for clearer crypto regulations are expected to grow.
3. Ripple’s Future Growth:
-With the legal cloud lifted, Ripple can focus on expansion, including CBDC partnerships and cross-border payment solutions. XRP’s market position may strengthen as institutional confidence returns.
The End of a Landmark Legal Battle
The Ripple vs. SEC case has been one of the most closely watched legal battles in crypto history. The settlement marks a decisive victory for Ripple and provides much-needed regulatory clarity for the industry.
With the SEC dropping its appeal and Ripple paying a reduced fine, the company is free to innovate without legal constraints. As Brad Garlinghouse stated, this is not just a win for Ripple—it’s a win for the entire crypto ecosystem.
What’s next for Ripple? Expect more partnerships, product launches, and global expansion—now with legal certainty on its side.
