SEC Settles Case with Ripple, Judge to Rule on Agreement

NEW YORK, NY — The U.S. Securities and Exchange Commission (SEC) has reached a settlement agreement with Ripple Labs, a leading enterprise blockchain company. The SEC filed a letter on May 5, 2025, requesting an indicative ruling from U.S. District Court Judge Analisa Torres. This move comes as the Second Circuit paused its appeal to allow both parties to finalize the settlement.

The filing indicates that Ripple’s penalty has been reduced from $125 million to $50 million. The remaining amount of $75 million will be returned to Ripple. Additionally, the injunction imposed by Judge Torres last August is expected to be lifted, pending the court’s approval.

Ripple and the SEC ask that if the case returns to the district court, Judge Torres would dissolve the injunction and permit the distribution of the escrow funds. This situation arises from a series of judgments issued starting in July 2023, where the court determined Ripple’s programmatic sales of XRP did not constitute securities, while the institutional sales did.

Ripple CEO Brad Garlinghouse recently shared insights on the conclusion of the SEC case, stating, “Q1 2025 was an incredible quarter for Ripple.” Garlinghouse highlighted the company’s growth, including recent acquisitions and increasing institutional interest in XRP globally.

Market analysts have noted a 7.2% increase in XRP’s value over the past 24 hours, reflecting positive market sentiment following the settlement news. The SEC’s upcoming closed meeting on May 8, where Chair Paul Atkins and other commissioners may vote on the settlement terms, will be crucial for the future of XRP.

Pro-crypto lawyer Bill Morgan commented on the public discussion around the SEC’s settlement terms. He indicated that while the SEC has agreed to request a vacate of the injunction, the situation remains fluid as the matter awaits court resolution.

The SEC’s filing marks a significant milestone in a legal battle that began in December 2020, potentially ending the regulatory uncertainty surrounding XRP. If approved, the settlement could pave the way for Ripple to operate without the overhang of litigation.