Almost two months after Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) had abandoned its appeal against the company, the two parties have agreed to a $50 million settlement, signaling the end to their multi-year legal standoff.

The agreement, submitted to the court on May 8, represents a decisive resolution to a case that has loomed over Ripple and the broader crypto sector for years.

Key Terms of the Deal

The settlement, outlined in a joint court filing, requests that New York Judge Analisa Torres dissolve an existing injunction against Ripple and release $125 million held in escrow. Under the terms, the crypto firm will pay the SEC $50 million, a fraction of the original fine meted out by Judge Torres, with the remaining $75 million returned to it.

The deal also ensures that the regulatory agency and the payments company will drop their respective appeals, with the former abandoning its challenge and the latter withdrawing its cross-appeal.

The saga started in December 2020, when the SEC filed a lawsuit against Ripple and two of its top executives, Chris Larsen and Brad Garlinghouse, over allegations of raising more than $1.3 billion through an unregistered securities offering by selling Ripple’s native XRP token.

Ripple disputed the claim, setting off a long-running legal battle that peaked in July 2023, when Judge Torres determined that XRP was not a security when sold to retail investors but qualified as one in institutional sales.

Consequently, the company was hit with a $125 million fine in August 2024 for selling unregistered securities to institutional investors. However, the SEC threw a wrench in the works, appealing the ruling in January 2025. It argued that XRP transactions should not be treated differently between institutional and retail sales, forcing Ripple to file a counter-appeal of its own.

Following changes at the SEC, including the departure of the hard-nosed Chair Gary Gensler, reports emerged that the financial watchdog would drop its appeal. However, there was no official communication from the agency regarding the issue.

Next Steps in the Process

According to lawyer James K. Filan, Judge Torres must issue an indicative ruling approving the proposed terms before the settlement is finalized. If she does, Ripple and the SEC will then seek a limited remand from the Second Circuit Court of Appeals to formally enact the agreement.

Once approved, the injunction against the crypto firm will be lifted, the escrowed funds will be distributed, and both sides will dismiss their appeals, officially ending the legal drama.

News of the settlement triggered an immediate reaction across the crypto ecosystem. XRP’s price climbed 5.2% in the past 24 hours, reaching $2.29, though it has slightly lagged behind the broader crypto market’s 7% weekly gain. Still, the asset remains one of the strongest performers over the past year, boasting a 340% uptick.

The XRP community, which has closely followed the case, celebrated the development, with prominent pro-Ripple attorney John E. Deaton succinctly capturing the sentiment with a post on X: “It’s over.”