Ripple Closes In On Legal Resolution With SEC, Will Recover $75 Million From Original Fine

Ripple Labs appears poised to conclude its lengthy courtroom standoff with the U.S. Securities and Exchange Commission with a proposed settlement returning $75 million of a previously imposed $125 million penalty.

In an update shared Tuesday on X (formerly Twitter), Ripple's Chief Legal Officer Stuart Alderoty announced the SEC agreed to retain only $50 million of the fine and return the remainder.

The proposal is still pending formal approval by both SEC commissioners and the court.

This development follows the SEC's recent decision to abandon its appeal of a 2023 ruling by U.S. District Judge Analisa Torres.

The judge found that Ripple's programmatic sales of XRP on retail exchanges did not constitute violations of securities laws — contradicting the SEC's broader claims.

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The court did determine Ripple's institutional sales of XRP did breach securities regulations, leading to the initial $125 million penalty.

The new settlement will also see Ripple drop its cross-appeal, effectively ending both sides' attempts to challenge aspects of the original verdict.

According to Alderoty, the SEC will also petition to lift the standard injunction currently imposed on Ripple.

The financial implications are significant.

The SEC originally sought nearly $2 billion in civil penalties and interest from Ripple. The final $50 million retained represents a small fraction of that amount.

Ripple's native token, XRP (CRYPTO: XRP), briefly rose 1.5% on the news before settling slightly lower. As of the latest data, XRP was trading at $2.47, down 0.5% over 24 hours, echoing broader market trends reflected in the CoinDesk 20 Index.

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