Ripple and SEC Reach $50M Settlement, Await Judge’s Approval

The U.S. Securities and Exchange Commission (SEC) has reached a settlement with Ripple Labs, marking a major turning point in the long-standing legal battle over XRP. On May 8, the SEC filed a joint letter with Ripple to Judge Analisa Torres, confirming the agreement and requesting an indicative ruling to finalize the settlement.

According to the filing, Ripple's civil penalty has been reduced to $50 million from the originally proposed $125 million. The remaining $75 million will be returned to the company. The settlement follows the Second Circuit Court’s decision to pause the appeals process, allowing the parties to finalize terms. Once the case is remanded, the district court will formally approve the deal, and both Ripple and the SEC will dismiss their appeals.

An important aspect of the agreement is the lifting of the injunction previously imposed by Judge Torres. This move will officially remove legal restrictions that had been placed on Ripple. Notably, both parties have agreed not to challenge or amend Judge Torres’s summary judgment ruling issued in July 2023, which partially favored Ripple by stating that XRP is not a security when sold on exchanges.

The resolution brings clarity to Ripple’s legal status in the U.S. and could have significant implications for the broader crypto industry. Investors and industry stakeholders are closely watching the outcome, as it may influence future SEC enforcement actions and regulatory approaches to digital assets.

This settlement represents one of the most high-profile crypto enforcement cases to date. Keywords such as Ripple, SEC settlement, XRP lawsuit, and crypto regulation remain crucial as the industry digests the implications of this legal milestone.