SEC Ripple Case Update: XRP Lawsuit Ends With $50M Penalty

SEC Ripple Case Update: XRP Legal Battle Ends, Price Affect Ahead

Following over four years of lawsuit, Ripple Labs and the U.S. SEC (Securities and Exchange Commission) have finally settled their much-publicized case regarding the XRP token. On May 8, 2025, both sides filed a joint motion to the court, requesting the lifting of previous limitations and the release of $125 million in escrow. 

Source: Dropbox

What's in the Settlement?

As part of the settlement, Ripple will pay a $50 million penalty to the SEC. The other $75 million from the escrow fund will be returned to Ripple. This fund was reserved following the court's August 7, 2024, decision, which held Ripple liable for violating securities laws through the sale of XRP.

Both the parties have agreed to drop their ongoing appeals with the Court, but only if the court approves the request to dissolve the existing injunction.

Judge Analisa Torres is now expected to give an “indicative ruling.” If she signals agreement, the case will return briefly to the district court for final orders. Once that happens, the legal process will end, and the funds will be released as planned.

No Admission of Guilt

The SEC made it clear that this settlement does not mean it accepts or denies the claims from either side. It also stated that this agreement will not set a legal example for other crypto cases.

Instead, the commission said its goal is to update its crypto policies and create a more modern approach to regulation. This comes after the departure of former SEC Chair Gary Gensler in January 2025. Under the new leadership of Chair Paul Atkins, the agency has been more open to working with crypto companies and has paused several past enforcement actions.

What It Means for XRP and the Market

This case has been one of the most crucial in the industry. As the settlement is official now, Ripple can have more liberty to focus on business operations in the states and globally. This clarity from the judiciary would also assist the coin's market confidence. It will probably also increase the price of the currency in the future. The currency has definitely experienced an increase of 6.26% in the last 24 hours post this announcement as per the data of CoinMarketCap. 

Source: CoinMarketCap

The crypto market is going to look at this closely, as this case will also affect how the SEC handles such lawsuits going forward.