Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly proposed a $125 million settlement to conclude their long-standing legal battle regarding XRP. Under the agreement, $50 million will be paid to the SEC as a civil penalty while $75 million is allocated for refunds to Ripple.
The dispute originated when the SEC accused Ripple of conducting unregistered securities offerings through institutional sales of XRP. A pivotal 2023 federal court ruling determined that while Ripple’s programmatic sales of XRP didn’t violate securities laws, its institutional sales constituted unlawful securities offerings.
The settlement signals a strategic shift in regulatory enforcement under SEC Chair Paul Atkins, prioritizing formal rulemaking over adversarial litigation. If approved, this resolution could substantially reduce industry-wide regulatory ambiguity and establish clearer compliance frameworks for cryptocurrency firms leveraging digital assets.
Market analysts suggest the agreement may catalyze broader adoption of blockchain-based financial solutions by providing legal certainty. The proposal remains subject to judicial approval before taking effect.