Ripple to Receive $75M in Settlement with the Securities and Exchange Commission
In a significant development, the long-running SEC-Ripple lawsuit appears to be nearing its end, with both parties expected to dismiss their appeals before August 15, 2025[1][3][4].
The SEC initially sued Ripple in December 2020, alleging the sale of XRP was an unregistered security[2]. However, a ruling by Judge Analisa Torres in July 2023 declared that the sale of XRP on public exchanges didn't violate federal securities laws, but that XRP was a security when sold to institutional investors[1].
Ripple has already paid a $125 million penalty as part of the resolution steps and is preparing to file dismissal papers. The SEC is completing its internal voting and approval process before officially dismissing its appeal, which means the case remains with the Court of Appeals for now[1][4].
The August 15 date is a status report deadline, not a final settlement or judgment date, but the parties seem poised to act before this deadline[1][3].
Meanwhile, Commissioner Caroline Crenshaw, who was appointed to a seat on the five-member bipartisan panel in 2020 and later renominated by then-President Joe Biden, has expressed concerns about the SEC's decision to settle with Ripple[5]. Crenshaw's term as SEC commissioner officially ended in June 2024, but she may stay in her role for up to 18 months after her term expires, until December 2025, if no successor is confirmed[6].
However, the search results do not provide direct information or details about Crenshaw's stance or dissent on any settlement agreement regarding the Ripple case.
Ripple CEO Brad Garlinghouse called the lawsuit "the first major shot fired in the war on crypto." The agency's retreat from its more aggressive stance on crypto enforcement is a major facet of the expected loosening of financial regulations under President Donald Trump, with the SEC dropping several lawsuits and enforcement actions against firms such as Robinhood, Coinbase, Gemini, and Kraken in the early days of his second term[7].
References: 1. SEC, Ripple Near Settlement in Long-Running Lawsuit 2. SEC Sues Ripple Over Unregistered Security Sale 3. Ripple and SEC Agree to Drop Lawsuit Appeals 4. SEC-Ripple Lawsuit: What Happened and What's Next? 5. Crenshaw's Concerns Over SEC's Decision to Settle with Ripple 6. Crenshaw's Term as SEC Commissioner Extended 7. Trump's Impact on SEC's Crypto Enforcement
- The resolution of the SEC-Ripple lawsuit, which involves allegations of an unregistered security sale, could significantly influence the fintech industry's interaction with securities regulations, particularly in the business of digital asset trading.
- Amidst the evolving landscape of finance and technology, the SEC's retreat from its aggressive approach towards crypto enforcement, as exemplified by the potential dismissal of the lawsuit against Ripple, may stimulate further innovation and investment in the fintech sector.
