Ripple to drop cross-appeal against SEC, to pay $50 million fine
According to Ripple’s chief legal officer, Stuart Alderoty, the company has agreed to discontinue its appeal against the United States Securities and Exchange Commission.
Ripple, the developer of XRP (xrp1.1%), has dropped its counter-appeal after the SEC’s decision.
In a post on X, Alderoty stated that all parties had agreed to withdraw their separate appeals and agreed on a reduced fine, which decreased 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,” stated Alderoty in a tweet. “Last Monday, the SEC decided to withdraw its appeal without condition. Ripple has decided to dismiss its crossappeal. The SEC will retain $50 million of the $125 million penalties (already in an interest-bearing escrow in cash), with the remainder remitted to Ripple.”
The SEC will also request that Judge Analisa Torres lift the customary “obey the law” injunction placed on Ripple in response to the agency’s motion.
Not a done deal
However, these agreements are still subject to a Commission vote. Final documentation and other usual court procedures must be completed. Once finalized, the Ripple vs. SEC case, which commenced in December 2020, will be formally concluded.
The latest developments in the case come as the SEC makes a complete U-turn following the departure of former chair Gary Gensler. Reports that the regulator was wrapping up its case against Ripple also appeared.
The SEC’s new interim chair, Mark Uyeda, has recently discontinued investigations and closed many high-profile litigations, including those against cryptocurrency exchanges Coinbase and Kraken.
This new direction has been defined by a more pro-innovation position, as opposed to the regulation-by-enforcement approach seen under Gensler’s leadership. Among the changes are roundtable sessions hosted by the Crypto Task Force, which is now directed by Commissioner Hester Peirce. Meanwhile, U.S. President Donald Trump’s nominee for SEC Chair, Paul Atkins, is scheduled to take over in the coming weeks.
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