Thomas Daniels
Ripple Labs has agreed to settle its longstanding legal battle with the U.S. Securities and Exchange Commission (SEC), marking a pivotal moment in the evolving landscape of crypto regulation. As part of the settlement, Ripple will pay a $50 million fine—less than half of the initially proposed $125 million penalty. The remainder, previously held in an interest-bearing escrow account, will be returned to the company.
The settlement includes the mutual withdrawal of appeals by both Ripple and the SEC. Stuart Alderoty, Ripple’s Chief Legal Officer, confirmed the development, noting that the SEC has also committed to requesting the removal of a prior injunction that had compelled Ripple to comply with certain legal directives.
While the settlement represents a near-final resolution, it remains subject to a formal vote by the SEC’s commissioners and the completion of standard legal procedures. Once finalized, this would officially close the case that began in December 2020.
This development coincides with a broader policy shift within the SEC. Following the departure of former Chair Gary Gensler, Acting Chair Mark Uyeda has initiated a reorientation of the agency’s approach to cryptocurrency regulation. Under Uyeda’s leadership, the SEC has either dropped or suspended multiple high-profile lawsuits, including those involving major exchanges like Coinbase and Kraken.
The regulatory body is now showing a marked departure from the aggressive “regulation-by-enforcement” stance that characterized previous years. The new direction includes more engagement with the crypto industry through initiatives such as roundtable discussions led by the Crypto Task Force, currently chaired by Commissioner Hester Peirce.
Further changes are expected with the anticipated appointment of Paul Atkins, a former SEC Commissioner and President Donald Trump’s nominee, as the agency’s next chair. His expected confirmation is seen by many as a step toward more innovation-friendly crypto oversight.
