SEC will keep $50 million of Ripple fine and refund the rest

Ripple and the U.S. Securities and Exchange Commission have reached an agreement to end their long-running legal battle over allegations the company offered unregistered securities. Following last week’s news that the SEC would drop its appeal without conditions, Ripple has now agreed to withdraw its cross-appeal, the company’s chief legal officer, Stuart Alderoty, said on X Tuesday.

The SEC will retain $50 million of the previously imposed $125 million fine — funds already held in an escrow account, Alderoty said. The remaining balance will be returned to Ripple.

Additionally, Alderoty said the agency will request that the court lift the standard injunction currently in place.

The resolution remains subject to a formal commission vote, finalization of legal documentation, and standard court procedures. Once completed, the case will be closed in full.

A spokesperson for the SEC declined to comment or confirm the details of the deal.

This agreement marks the end of a closely watched, four-year legal battle that began in December 2020, when the SEC accused Ripple of conducting an unregistered securities offering through sales of XRP. The case became a key test of how U.S. securities laws apply to digital assets during the tenure of outgoing SEC Chair Gary Gensler.

Its conclusion also signals a broader shift in Washington’s approach to crypto regulation.

Since President Donald Trump began his second term in January, the SEC has scaled back its enforcement efforts, dropping civil lawsuits against exchanges Coinbase and Kraken and signaling a potential resolution in its fraud case against crypto entrepreneur Justin Sun.

The trend points to a more conciliatory regulatory posture, one that seeks to balance investor protection with support for innovation in the digital asset space.

Watch: Trump announces U.S. strategic crypto reserve including bitcoin, solana, XRP and more