The U.S. SEC said it has ended its case accusing Ripple Labs of selling unregistered securities, leaving a $125 million fine in place after the two sides agreed to drop appeals on last Thursday.
The move closes one of the crypto industry’s most watched lawsuits. The agreement stems from a Manhattan federal court order by U.S. District Judge Analisa Torres and resolves claims that dated back to a December 2020 complaint.
The agencies and the company said they will dismiss appeals and let the judgment and an injunction on certain institutional sales stand.
Officials react
Commissioner Hester Peirce welcomed the outcome, and she said, “Last week, the SEC’s case against Ripple was finally laid to rest. A welcome development for many reasons, including that minds once occupied with litigation now can concentrate on creating a clear regulatory framework for crypto.”
Commissioner Paul Atkins agreed with her comments. He said the closure opens space for policy work. “With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table,” he wrote. He added that the goal should be rules that allow innovation while protecting investors.
What does the deal change?
The settlement keeps the $125M fine that Judge Torres imposed. It also leaves an injunction in place that limits the sale of XRP to institutional buyers under certain terms.
The appeals were the last major legal steps that could have altered those rulings. By dropping the appeals, both sides accept the current federal ruling as final.
Also Read: Ripple Secures Key Money Transmitter Licenses In New York & Texas, Expanding Global Payment Reach
Background of the dispute
The SEC sued Ripple in December 2020, and the SEC accused Ripple of selling XRP tokens without registering them as securities. The case became a test of how U.S. law applies to crypto tokens. It drew wide interest from exchanges, token projects and regulators.
Much of the legal debate focused on whether XRP was an investment contract or a currency or token.
Why this matters?
The case shaped views on how regulators might treat other tokens. With the suit closed, firms may feel less risk from an active federal case.
At the same time, the final judgment and the fine remain, which means Ripple must still comply with the court’s terms. The ruling and the remarks by commissioners suggest a shift from courtroom fights to policy debate.
What could come next?
Expect focus on rule-making and guidance from regulators, and companies in the space will likely push for clearer rules on token sales and registration.
Lawmakers and agencies may steer their efforts toward crafting policy that covers tokens, exchanges and market practices. The industry may also press for new guardrails that balance investor safety with a chance for new ideas.