Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are nearing the conclusion of their long-running legal battle, with discussions focused on a $125 million penalty imposed on Ripple in 2024. Fox Business journalist Eleanor Terrett, citing unnamed sources, reported that both parties are engaged in settlement talks. Ripple’s legal team is questioning why the company should still face a penalty, especially since the SEC under Acting Chair Mark Uyeda has dropped cases against other crypto firms like Coinbase, Consensys, and Kraken.
Ripple’s chief legal officer, Stuart Alderoty, addressed the ongoing negotiations on March 11, stating that Ripple’s case was further along than others, as it already has a judgment and is in the appeals process. He acknowledged that this added complexity but remained confident about a resolution. If no settlement is reached, Ripple plans to proceed with its appeal. The case dates back to December 2020, when the SEC accused Ripple of selling XRP as an unregistered security, allegedly raising $1.3 billion. In August 2024, Judge Analisa Torres ruled that XRP was not a security in programmatic sales on exchanges but upheld penalties for institutional sales. The SEC, then led by Gary Gensler, appealed the ruling, and Ripple responded with a cross-appeal.
At the same time, Ripple’s involvement in U.S. politics has been growing. In December 2024, Ripple CEO Brad Garlinghouse suggested that the company’s political engagement might have been different had the SEC been under different leadership. Ripple has donated a total of $45 million to the crypto-focused political action committee Fairshake, including a $25 million contribution in November 2024. Additionally, the company pledged $5 million in XRP to President Donald Trump’s inauguration fund. Both Garlinghouse and Alderoty attended official events in Washington, D.C., on Jan. 20.
There has been speculation about whether political contributions have influenced the SEC’s decisions. Coinbase, another major Fairshake donor, saw its SEC case halted in February. Its CEO, Brian Armstrong, was also present at a White House crypto summit on March 7, where Garlinghouse was in attendance. However, Alderoty dismissed claims that political donations impacted the SEC’s approach, instead crediting the shift to Uyeda’s leadership.
Despite the ongoing discussions, no official filing has indicated that the SEC intends to drop the case against Ripple. Legal analyst Jeremy Hogan suggested a resolution could come as early as May 2025. Following the news of potential settlement talks, XRP’s price saw a 3% increase.
