Let's Look At The Aftermath Of The Ripple v/s SEC: $50M Settlement Marks New Chapter

In This Article

CTO Downplays the Win, Says Company Must Obey the Law
US Remains a Key Market for Ripple

Ripple Labs and the US Securities and Exchange Commission (SEC) have finally settled the legal battle that began in December 2020. On 25 March 2025, Ripple announced that it had dropped its cross-appeal against the SEC and consented to pay $50 million in fines, with the SEC retaining funds already held in escrow.

Initially, Judge Torres’s ruling at the district appellate court in July 2023 found that XRP sales to retail investors did not fall under securities except for institutional investors and had imposed a reduced fine of $125 million, much less than the SEC’s request of $1.9 billion. Also, the court imposed an injunction that prevented the company from selling XRP to institutions.

Now, with Ripple agreeing to pay the reduced fine, both parties have agreed to drop their respective appeals, effectively bringing this case to a close.

The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever…

Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an…

— Stuart Alderoty (@s_alderoty) March 25, 2025

At the time, the SEC’s case against Ripple was one of the most high-profile cases in the crypto industry since its ruling could potentially set a precedent on how digital assets might be classified and regulated in the US going forward.

The closing of this long-standing case follows Ripple CEO Brad Garlinghouse’s announcement last week, where he had mentioned that the SEC would be dropping its case against the company.

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CTO Downplays the Win, Says Company Must Obey the Law

In the aftermath of the legal battle’s conclusion between Ripple and the SEC, analysts speculated that the SEC would allow Ripple to sell XRP to institutional investors once it lifted the permanent injunction.

Ripple CTO David Schwartz, however, has downplayed this win and has emphasized that the SEC lifting the injunction does not change Ripple’s legal obligations. As per Schwartz, the company must adhere to Judge Torres’s ruling, irrespective of the injunction’s existence.

He believes that the lifting of the injunction is just a part of a series of sweeping changes that the SEC is bringing in under the new administration.

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US Remains a Key Market for Ripple

The US remains a key market for Ripple as it has continued its operations in payments and securities even with the legal challenges it faced. Now that the company is clear of these uncertainties, Ripple is looking to increase its American client base rather than just relying heavily on international customers.

Noting that the political climate in the US has shifted to being more crypto-friendly under President Trump’s administration, this legal battle has concluded at a favorable time,

Crypto-friendly policies are gaining ground. Case in point, the Office of the Comptroller of the Currency (OCC) is now allowing US banks and other savings associations to offer stablecoin and crypto custody services without prior approval.

With traditional banking systems now opening up to blockchain-based financial tools, doors are open for Ripple to work with banks on cross-border payment mechanisms involving its XRP token.

Despite the positive development, the market’s reaction to Ripple’s win has been quite subdued, and XRP’s price has remained relatively flat in the last few days.

The Head of Growth at WeFi, a decentralized on-chain bank, commented, “The market reaction to Ripple’s win has been muted. The case has been ongoing since 2020, and its resolution was largely priced in.”

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Key Takeaways

Ripple settles with SEC, paying $50M in fines, ending a high-profile legal case that has been going on since December 2020.
Ripple eyes US market growth post-case, benefiting from crypto-friendly policies under President Trump’s administration.
Ripple’s CTO emphasizes that legal obligations remain unchanged despite lifting the SEC injunction on institutional XRP sales