The U.S. Securities and Exchange Commission (SEC) may be close to ending its legal battle against Ripple Labs after more than four years. The case, which began in December 2020, accused Ripple of selling XRP as an unregistered security to raise funds.
According to Fox Business reporter Eleanor Terrett, the case is now “in the process of wrapping up.” However, a final settlement or court decision may still require Ripple to pay a monetary penalty.
Ripple’s $125 Million Judgment and Legal Appeals
The SEC’s lawsuit led to a major court ruling in August 2024, where a judge ordered Ripple to pay $125 million. Both Ripple and the SEC appealed the decision, leading to ongoing legal proceedings.
Ripple’s Chief Legal Officer (CLO) Stuart Alderoty confirmed that the case has progressed further than other SEC lawsuits against crypto companies. He noted that the situation is more complicated because of the existing court judgment and ongoing appeals.
Alderoty explained that if both Ripple and the SEC agree to drop their appeals, the $125 million judgment would remain in place. If there is a disagreement over the amount, the court would need to intervene.
SEC Softens Stance Under Trump’s Administration
While the SEC originally filed the case under former SEC Chair, Jay Clayton, the agency became much more aggressive toward crypto firms under Chair Gary Gensler in 2021. During Gensler’s tenure, the SEC sued several major crypto companies, including Coinbase, Kraken, and Consensys.
However, following Donald Trump’s return to office in 2025, the SEC has begun dropping enforcement actions against crypto firms. Since January, the commission has ended cases against Coinbase, Kraken, and Consensys, signaling a more lenient approach.
Did Political Donations Influence SEC’s Decisions?
Ripple’s leadership has been actively involved in U.S. politics, particularly during the 2024 election cycle. The company donated $45 million to a crypto-focused political action committee (PAC) named Fairshake and contributed another $25 million in November 2024.
Following Trump’s victory, Ripple pledged $5 million in XRP to his inauguration fund, and both CEO Brad Garlinghouse and CLO Stuart Alderoty attended official events in Washington, D.C., on Jan. 20.
Other crypto firms, including Coinbase, also made political contributions. Coinbase donated $1 million to Trump’s inauguration and later saw its SEC lawsuit halted in February. Additionally, Coinbase CEO Brian Armstrong attended a crypto summit at the White House on March 7.
Some critics argue that these political donations may have influenced the SEC’s decision to drop cases against crypto firms. However, Alderoty denied any political connections, stating that the SEC’s shift in stance is due to policy changes, not donations.
What’s Next for the SEC and Ripple?
Despite reports that the case is nearing an end, there is no official court filing confirming that the SEC has decided to drop it. The case remains on the dockets of the U.S. District Court for the Southern District of New York and the U.S. Court of Appeals for the Second Circuit.
The future of SEC enforcement will depend on its leadership. Currently, Mark Uyeda is the acting SEC chair, but Paul Atkins has been nominated as the next permanent chair. However, the U.S. Senate has not yet scheduled a confirmation hearing.
