Ripple has officially dropped its counter-appeal against the U.S. Securities and Exchange Commission (SEC), effectively marking the end of a legal battle that began in December 2020. This decision comes just days after the SEC withdrew its own appeal, signaling a final resolution to one of the most significant lawsuits in the crypto industry.
Ripple’s chief legal officer, Stuart Alderoty, confirmed the decision in a March 25 X post, stating that both parties had reached an agreement that reduces Ripple’s original $125 million fine to $50 million. The SEC will retain this amount, which was already held in an interest-bearing escrow account, while the remaining funds will be returned to Ripple.
Final Steps Before the Case is Officially Closed
Although the settlement has been agreed upon, it is still subject to a final vote by the SEC Commission. Additionally, certain legal formalities and documentation must be completed before the case can be fully closed. However, industry analysts believe these are merely procedural steps, and the settlement will likely be finalized without complications.
Alderoty emphasized that the SEC will also request Judge Analisa Torres to lift the standard “obey the law” injunction imposed on Ripple. This injunction, which typically accompanies enforcement actions, has been a point of contention throughout the case. Once lifted, Ripple will have no outstanding restrictions related to this lawsuit.
A Regulatory Shift at the SEC
This settlement follows a broader shift in the SEC’s approach to cryptocurrency regulation, driven by recent leadership changes. Under the tenure of former SEC Chair Gary Gensler, the regulator aggressively pursued enforcement actions against crypto companies, including high-profile cases against Ripple, Coinbase, Binance, and Kraken. However, with Gensler’s exit and the appointment of interim SEC Chair Mark Uyeda, the agency appears to be moving away from a strict enforcement-focused approach.
Reports indicate that the SEC has closed several investigations and lawsuits in recent weeks, including cases involving Coinbase and Kraken. The agency has also launched roundtable discussions led by Commissioner Hester Peirce, aiming to engage with the crypto industry and develop more transparent regulations.
What’s Next for Ripple and Crypto Regulation?
With U.S. President Donald Trump’s pick for SEC Chair, Paul Atkins, set to take over soon, the crypto industry is watching closely to see how regulatory policies will evolve. Many expect clearer guidelines and a more innovation-friendly regulatory environment, as opposed to the aggressive crackdown seen under Gensler’s leadership.
For Ripple, the resolution of this lawsuit removes a major legal obstacle, allowing the company to focus on expanding its blockchain-based payment solutions. The case’s conclusion could also set a precedent for future legal battles involving digital assets, influencing how crypto companies interact with regulators in the future.
For the latest updates on Ripple, the SEC, and the evolving crypto landscape, visit TheCoinInfo.
