After extensive legal negotiations, Ripple Labs has officially concluded its lawsuit with the U.S. Securities and Exchange Commission (SEC). The company’s Chief Legal Officer announced that it will forgo its cross-appeal, resulting in a $75 million refund from a previous ruling.
Despite this favorable development, XRP’s price remained relatively stable at $2.45 at the time of reporting, with only an 8% increase observed over the week.
The legal team for Ripple confirmed the decision to withdraw from its cross-appeal against the SEC in the U.S. Court of Appeals for the Second Circuit. The ruling from August 2024 determined that Ripple was liable to pay a fine of $125 million. However, instead of paying the entire amount, the SEC will only retain $50 million while Ripple will reclaim the rest. Additionally, the SEC will request the court to lift a previously imposed injunction to finalize the case.
This agreement was contingent upon final documentation, court approval, and an official vote by SEC commissioners. The resolution came after the SEC’s decision to drop its appeal, indicating a collaborative conclusion to the litigation.
The SEC initially filed the lawsuit against Ripple in December 2020, making it one of the longest-running enforcement actions involving a major crypto company in the United States. The agency claimed that Ripple had raised $1.3 billion from selling its XRP token without registering it as a security. The prolonged legal battle reportedly cost Ripple around $150 million in legal expenses but also set an important legal precedent within the cryptocurrency sector. Ripple distinguished itself as one of the rare firms ready to confront the SEC’s regulatory stance and achieved victories on significant legal questions.
With the SEC now backing down and settling, the agency appears to be reevaluating its stance on cryptocurrency regulation. Upcoming considerations for regulatory leadership changes, particularly the nomination of former SEC Commissioner Paul Atkins as the new chair, are noteworthy. Known for a more industry-friendly approach, Atkins is expected to answer pressing questions regarding his regulatory philosophy and possible conflicts of interest.
The conclusion of Ripple’s legal struggle is being closely monitored by the cryptocurrency industry, as the outcome may influence future regulatory policies under new leadership. As the landscape evolves, stakeholders anticipate changes that could impact how cryptocurrencies are regulated moving forward.