In a landmark development for the cryptocurrency industry, Ripple Labs has concluded its extended legal battle with the U.S. Securities and Exchange Commission (SEC), with the regulatory body retaining $50 million of the initial $125 million fine while agreeing to refund the remainder to the blockchain company.
The resolution, announced on March 25, 2025, by Ripple’s Chief Legal Officer Stuart Alderoty, marks a decisive end to a case that has captivated the crypto sector since December 2020. The settlement includes Ripple’s withdrawal of its cross-appeal and the SEC’s commitment to request the lifting of a previously imposed standard injunction.
“This is it — the moment we’ve been waiting for. The SEC will drop its appeal — a resounding victory for Ripple, for crypto, every way you look at it. The future is bright. Let’s build,” declared Ripple CEO Brad Garlinghouse, emphasizing the significance of this resolution for both the company and the broader digital asset industry.
Today, Ripple moves forward—stronger than ever. This landmark case set a precedent for the domestic crypto industry.
— Stuart Alderoty (@s_alderoty) March 19, 2025
With the SEC dropping its appeal, Ripple is now in the driver's seat and we’ll evaluate how best to pursue our cross appeal. Regardless, today is a day to… https://t.co/NLgmiRrcjx
The case originated when the SEC filed charges against Ripple, alleging that its sale of XRP tokens constituted an unregistered securities offering. The turning point came in July 2023, when a federal judge ruled that XRP sales to retail investors on exchanges did not qualify as securities transactions, though institutional sales were found to violate securities laws.
This partial victory for Ripple has now culminated in a settlement that significantly reduces the company’s financial burden. The agreement to return a substantial portion of the fine demonstrates a more nuanced approach to cryptocurrency regulation, potentially setting precedents for future cases in the digital asset space.
Stuart Alderoty clarified that while the lifting of the injunction represents progress, it doesn’t alter Ripple’s fundamental legal obligations. The company remains bound by Judge Torres’s ruling, highlighting the ongoing importance of regulatory compliance in the cryptocurrency sector.
The resolution carries broader implications for the cryptocurrency industry, potentially influencing how regulators approach digital asset oversight. It reinforces the argument that not all digital assets should be classified as securities, possibly leading to more refined regulatory frameworks for cryptocurrency operations in the United States.
As the dust settles on this landmark case, the cryptocurrency industry watches closely to see how this precedent might shape future regulatory approaches. The settlement represents a balanced resolution that acknowledges both regulatory concerns and innovation in the digital asset space, potentially paving the way for clearer guidelines in cryptocurrency governance.
Source: CNBC
