Ripple Settles with SEC, Agrees to $50 Million Penalty and XRP Injunction Lift

Ripple Labs is set to conclude its legal battle with the SEC, agreeing to a $50 million penalty and the SEC's request to lift the injunction prohibiting Ripple from selling XRP to institutions. This agreement, announced Tuesday on X by Ripple's Chief Legal Officer Stuart Alderoty, involves the SEC retaining only $50 million of the original $125 million penalty, with the remaining $75 million being returned to Ripple from an interest-bearing escrow account. The settlement follows the SEC's decision to drop its appeal of a 2023 ruling that XRP sales on retail exchanges did not violate securities laws. While institutional sales were deemed to breach regulations, this resolution marks a significant step, potentially ending a dispute that began in December 2020, pending final approvals and court procedures. XRP's price saw a brief 1.5% increase upon the news, before settling slightly lower, trading at $2.47, down 0.5% over 24 hours.