Ripple has settled with the U.S. Securities and Exchange Commission (SEC), agreeing to pay a $50 million penalty and withdraw its cross-appeal in the long-running lawsuit.
In return, the SEC will request that an injunction that prevents Ripple from selling XRP to institutional investors be removed. The settlement significantly reduces Ripple’s financial penalty, originally set at $125 million.
“The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever,” he wrote. Alderoty added that both parties had agreed to withdraw their respective appeals and that the SEC had settled for a reduced fine, cutting the original $125 million penalty to $50 million.
Ripple’s Chief Legal Officer Stuart Alderoty confirmed the agreement in a post on X, describing it as the final step in resolving the case.
The SEC is now set to request that Judge Torres lift the standard injunction imposed on Ripple following the agency’s motion.
The legal battle, which began in December 2020, was in an appeal phase after Judge Analisa Torres ruled that while XRP sales to retail investors on exchanges did not violate securities laws, institutional sales did meet the criteria for investment contracts under the Howey Test.
“The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple,” he said.