Ripple Labs has reportedly agreed to pay just $50 million to the U.S. SEC, a massive reduction from the $125 million civil penalty originally imposed by the court over its unregistered XRP institutional sales. The legal softening signals a broader trend following the departure of former SEC Chair Gary Gensler—where crypto firms are striking settlement deals amid shifting regulatory winds.
Key Points
- Ripple’s top lawyer, Stuart Alderoty (X profile), confirmed a $50M settlement proposal.
- The original penalty was $125M for historical institutional XRP sales.
- This follows a court ruling that XRP is not a security in retail markets.
- The deal would conclude the SEC’s flagship crypto enforcement case.
- Since Gensler’s exit, SEC has quietly settled with other crypto firms.
- Nexo, BlockFi, and Genesis have also reached partial or full settlements.
- The DOJ and CFTC are now expected to lead on fraud and manipulation cases.
Short Narrative
Ripple’s long-running legal war with the SEC may finally be reaching its end. The crypto firm is reportedly ready to pay just $50 million to close the books on the agency’s historic lawsuit over XRP. That’s less than half the court-imposed penalty and signals a broader retreat by the SEC in crypto regulation. Since Gary Gensler left office, crypto enforcement seems to have moved from headline-grabbing lawsuits to quiet settlements. Ripple’s deal could set a precedent—acknowledging past violations without conceding the future status of XRP.
Actionable Insight
Retail investors and crypto startups should note the shifting landscape: The SEC is no longer the crypto sheriff it once tried to be. While the regulatory fog lifts, the legal vacuum is being filled by the CFTC and DOJ, especially in cases involving fraud, manipulation, or systemic risk. Compliance teams should re-assess enforcement risks across federal agencies, not just the SEC.
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