In a major legal breakthrough, the U.S. Securities and Exchange Commission (SEC) has officially submitted a settlement agreement to Judge Analisa Torres, signaling that its long-standing case against Ripple may finally be wrapping up.
The document, filed in the Southern District of New York, confirms that both the SEC and Ripple have come to terms after months of negotiations. It now falls to Judge Torres to issue an “indicative ruling” that would determine whether the lower court is open to modifying the original judgment—an essential move before the case can return from the Court of Appeals for finalization.
Ripple’s Fine Slashed in New Deal
Perhaps the most notable detail from the newly filed settlement is the SEC’s agreement to reduce Ripple’s financial penalty. Originally fined $125 million, Ripple will now pay only $50 million, with the remaining $75 million being returned to the company. If approved, this would mark a massive win for Ripple, both financially and reputationally.
Also on the table is the lifting of a court-imposed injunction from August 2024—a move that would free Ripple from previous legal constraints, pending the district court’s approval.
No Appeal on Key Ruling About XRP Sales
Another key part of the agreement: neither party will challenge Judge Torres’ summary judgment from July 2023. That ruling was a partial victory for Ripple, establishing that XRP sales on public exchanges did not amount to securities offerings. However, institutional sales were still found to be in violation of securities law, which forms the basis of the SEC’s original complaint.
By locking in this split decision, both Ripple and the SEC appear ready to accept a compromise that avoids further courtroom drama.
XRP Reacts with Price Jump
Crypto traders didn’t waste time digesting the news. XRP spiked by 7.2% in just 24 hours, according to CoinGecko data, reflecting renewed optimism around the asset as regulatory fog begins to lift.
The sharp rise suggests that many in the market view this potential resolution as a turning point for Ripple—and perhaps for how U.S. regulators engage with blockchain projects moving forward.
What’s Next?
Now, all eyes turn to Judge Torres and the district court. If the court is willing to support the changes outlined in the agreement, the appeals process will be dropped, and the settlement will become official.
After nearly three years of legal wrangling, this could bring long-awaited closure to a case that’s shaped much of the conversation around crypto regulation in the United States
