- Ripple has proposed a joint $125 million settlement with the SEC, aiming to resolve their years-long legal battle over XRP’s regulatory status.
- Ripple would retain $75 million from escrow while paying $50 million to the SEC if the court approves the deal.
Ripple and SEC Strike Settlement Proposal
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly proposed a $125 million civil penalty split in a bid to end their long-running legal showdown over XRP. The June 12 court filing, shared by Eleanor Terrett, outlines the terms: $50 million would be paid to the SEC, while the remaining $75 million would be released back to Ripple from escrow.
The proposed settlement also seeks to dissolve a prior injunction and terminate the case, marking a pivotal moment in one of crypto’s most defining legal sagas.
The Legal Battle That Shaped Crypto Regulation
The conflict began in 2020 when the SEC accused Ripple of conducting unregistered securities sales through XRP’s institutional offerings. In 2023, a court ruled that Ripple’s programmatic XRP sales didn’t violate securities laws but upheld SEC claims regarding institutional sales. Consequently, a $125 million penalty was imposed in August 2024 and held in escrow while Ripple appealed the decision.
Both parties intensified efforts to resolve the case in April 2025 by pausing appeals to pursue settlement talks. However, the court rejected their first attempt in May 2025 due to insufficient justification.The renewed filing now cites the “exceptional circumstances” required for court approval.
SEC’s Softer Stance on Crypto Enforcement
The shift in tone from the SEC reflects the changing regulatory landscape under new Chair Paul Atkins. Since early 2025, the Commission has scaled back aggressive enforcement actions, opting instead to promote rulemaking over courtroom battles. The Ripple case has served as a bellwether for how the U.S. might treat digital assets going forward.
What’s Next?
Should the court approve the settlement, both Ripple and the SEC would withdraw their appeals, finally closing the chapter on a case that has heavily influenced crypto regulation. But if the judge denies the proposal, the legal tug-of-war could return to the appellate court, potentially dragging into late 2025.
This deal, if approved, would mark a rare and meaningful compromise in a space often dominated by legal uncertainty and regulatory tension.
