Ripple Abandons Cross-Appeal Against SEC, Agrees to $50m Penalty

Ripple has decided to abandon its appeal in the dispute with the U.S. Securities and Exchange Commission, as announced by the company's chief legal officer Stuart Alderoty.

Just a few days after the SEC withdrew its lawsuit against Ripple, the company confirmed it would also be withdrawing its counter-appeal. 

In a post on X, Alderoty stated that both sides had agreed to dismiss their respective appeals and had agreed on a lower fine, reducing the original $125 million penalty to $50 million.

"The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever," Alderoty wrote. "Last week, the SEC agreed to drop its appeal without conditions. Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple."

The SEC is also expected to request that Judge Analisa Torres lift the standard “obey the law” injunction imposed on Ripple following the agency’s motion.

Not a done deal

However, these agreements are still subject to a vote by the Commission. Final documentation and other standard court procedures also need to be completed. Once finalized, the Ripple versus SEC case, which began in December 2020, will officially come to an end.

The latest news around the case comes as the SEC takes a complete reversal following the departure of former chair Gary Gensler. Reports that the regulator was winding up its case against Ripple also emerged.

Under new interim chair Mark Uyeda, the SEC has, in recent weeks, dropped investigations and closed several high-profile lawsuits, including those against crypto exchanges Coinbase and Kraken.

A more pro-innovation approach has characterized this new direction, moving away from the regulation-by-enforcement approach seen during Gensler’s tenure. Among the changes: roundtable meetings by the Crypto Task Force, now led by Commissioner Hester Peirce.

Meanwhile, U.S. President Donald Trump’s pick for new SEC Chair Paul Atkins is expected to take over in the coming weeks.