Ripple and SEC approach XRP sales fine with resolution of more than $125 million in 4-year lawsuit
Ripple Labs and the U.S. Securities and Exchange Commission are about to end the conclusion of their long-standing legal battle, with the discussion focused on a $125 million fine against Ripple in 2024. Fox Business News reporter Eleanor Terrett cited an unnamed source and reported that both sides were in settlement negotiations. Ripple’s legal team is questioning why the company should still face fines, especially since SEC chairman Mark Uyeda has abandoned the case with other cryptocurrency companies such as Coinbase, Consensys and Kraken.
Ripple’s chief legal officer Stuart Alderoty, in ongoing negotiations on March 11, noting that Ripple’s case is further away than others because it already has a verdict and is in the appeal process. This adds complexity, he admits, but remains confident in the solution. Ripple plans to appeal if no settlement is reached. The case dates back to December 2020, when the SEC alleged that the sale of XRP was rumored to raise $1.3 billion. In August 2024, Judge Analisa Torres ruled that XRP is not the security of programmatic sales on the exchange, but a fine for institutional sales. The SEC was then led by Gary Gensler to appeal the ruling, which Ripple responded with a cross appeal.
Meanwhile, Ripple’s participation in American politics has been growing. In December 2024, Ripple CEO Brad Garlinghouse suggested that the company’s political participation could vary if the SEC was under different leadership. Ripple has donated $45 million to cryptocurrency-focused political action committee Fairshake, including a $25 million donation in November 2024. In addition, the company also guaranteed $5 million in XRP to President Donald Trump’s inauguration fund. On January 20, Garlinghouse and Alderoty both attended the official event in Washington, D.C.
There has been speculation on whether political contributions have influenced the SEC’s decision. Another major Fairshake donor, Coinbase, saw its SEC case stopping in February. Its CEO Brian Armstrong also attended the White House crypto summit on March 7, attended by Garlinghouse. However, Alderoty dismissed the claim that political donations influenced the SEC’s approach, instead attributed the transformation to Uyeda’s leadership.
Despite ongoing discussions, no official documents indicate that the SEC intends to abandon the case against Ripple. Legal analyst Jeremy Hogan believes that the earliest possible resolution may be May 2025. XRP’s price has increased by 3% after news of potential settlement negotiations.
