Ripple, SEC Reach Settlement in Landmark XRP Case

After years of legal uncertainty, Ripple and the U.S. Securities and Exchange Commission (SEC) have officially reached a settlement in their high-profile legal battle, bringing clarity to one of the most closely watched crypto cases in recent history. The SEC confirmed the agreement on Monday, ending months of speculation and behind-the-scenes negotiations.

Under the terms of the settlement, Ripple will pay $50 million of the originally proposed $125 million penalty. The remaining $75 million will be returned to the company. Importantly, the deal also includes Ripple’s executives, whose individual cases had already been resolved earlier. Central to the outcome is the fate of Ripple’s XRP token, which has long been at the heart of the SEC’s allegations.

The resolution is contingent on court approval to lift the injunction currently imposed on Ripple. Attorney John Deaton, who has been actively engaged in the case, said it would be “absolutely shocking” if Judge Analisa Torres did not agree to lift the restriction given the agreement between the parties.

In the wake of the announcement, rumors quickly began circulating on social media suggesting that Ripple would pay the fine in XRP and that the U.S. government might hold XRP in reserve. However, these claims were swiftly debunked by legal experts. Former SEC lawyer Marc Fagel confirmed that the fine is being paid in cash, already held by Ripple’s legal counsel, and will be transferred to the SEC once the court signs off on the deal.

Attorney Bill Morgan also clarified that the funds had been placed in a U.S. dollar account and have been earning interest, with both Ripple and the SEC in agreement on the distribution terms.

The settlement marks a major milestone for Ripple and the broader crypto industry, potentially setting a precedent for how regulators approach digital assets in future enforcement actions.