Ripple-SEC Lawsuit Ends with $50M Settlement: What It Means for XRP

After more than four years of legal proceedings, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have reached a long-awaited settlement in their high-profile XRP token case.

On May 8, 2025, both parties filed a joint motion requesting that the court lift existing restrictions and release the $125 million currently held in escrow.

Terms of the Settlement

Under the agreement:

Ripple will pay a $50 million civil penalty to the SEC.
The remaining $75 million in escrow will be returned to Ripple.

Following the August 7, 2024, ruling, this escrow fund was originally set aside, in which the court found Ripple liable for securities law violations related to its XRP sales.

As part of the deal, both Ripple and the SEC have agreed to drop any further appeals, provided the court approves the dissolution of the injunction. Judge Analisa Torres is expected to issue an indicative ruling. If she approves, the case will be returned to the district court for final confirmation before the funds are officially released.

No Admission of Guilt or Legal Precedent

Importantly, the SEC clarified that the settlement does not imply an admission of guilt by either party. Nor does it set any legal precedent for other cryptocurrency-related cases.

Instead, the Commission stated that this resolution reflects a policy shift toward modernised crypto oversight, following the departure of former SEC Chair Gary Gensler in January 2025. His successor, Chair Paul Atkins, has adopted a more collaborative approach with digital asset firms, halting several ongoing enforcement actions.

Market Impact: What’s Next for XRP?

The Ripple case has been one of the most influential legal battles in crypto. Now that the case is effectively closed, Ripple gains regulatory clarity, enabling the company to expand operations in the U.S. and globally.

The market has already responded. According to Coinmarketcap, XRP rose 6.26% in the 24 hours following the announcement, as traders welcomed the end of regulatory uncertainty.

This settlement may also guide future SEC enforcement behaviour, providing a more precise roadmap for other crypto projects navigating regulatory compliance.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.