Ripple Labs and the United States Securities and Exchange Commission (SEC) have filed a joint motion to dissolve a court injunction and release a $125 million penalty, signaling the end of a heated four-year crypto clash. This move, announced today, could unlock Ripple’s XRP for U.S. institutional sales, boosting its global payment solutions.
SEC, Ripple Legal Battles End
The SEC sued Ripple in 2020, alleging $1.3 billion in unregistered XRP sales violated securities laws. A 2023 ruling by Judge Torres found only institutional sales breached regulations, a partial win for Ripple. Appeals dragged on until a shift in SEC leadership under a Trump-appointed chair softened its stance.
In April 2025, both parties paused appeals to negotiate. The joint request to pause court proceedings, filed on April 10, suggested that Ripple and the SEC were working toward a settlement agreement. According to the court filing, the parties have agreed in principle to conclude the case, pending formal approval from the SEC Commission. This pause has led to the dissolution of all legal battles.
This victory frees Ripple to reinvest its $75 million share into blockchain innovation, with plans to expand XRP’s role in cross-border payments. CEO Brad Garlinghouse hailed the outcome as a “win for crypto,” with an eye toward partnerships with U.S. financial institutions.
Firms See Lawsuits Vanish
The SEC’s crypto enforcement has seen a decline in high-profile cases recently, following the new administration’s more relaxed regulatory stance. For example, in 2025, Coinbase’s lawsuit, filed in 2023 over unregistered exchange operations, was dismissed as the SEC pivoted to a lighter regulatory approach. Kraken’s 2023 case, alleging unregistered securities trading, also fizzled out under new leadership.
Binance.US faced a 2024 probe for similar issues, but the SEC quietly withdrew, citing evolving policy. These retreats, criticized by SEC Commissioner Caroline Crenshaw for risking investor protection, highlight a broader easing of crypto crackdowns, aligning with Ripple’s resolution.
Meanwhile, just three days ago, the new SEC chair, Paul Atkins, announced policies to reduce regulatory barriers for decentralized finance (DeFi) platforms, marking a significant departure from the previous administration’s enforcement-heavy approach. Speaking at the agency’s Crypto Task Force Roundtable recently, Atkins emphasized fostering innovation while maintaining investor protections, which has sparked optimism across the DeFi sector.
