SEC and Ripple Near Case Settlement

Once the four-year fight between the regulator and the XRP issuer ends, it could change how digital money will be regulated.

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Mar 13, 2025

The Securities and Exchange Commission (SEC) and Ripple Labs are "in the process of wrapping up" the landmark lawsuit that began in December 2020, said Fox Business’ Eleanor Terrett.

The SEC had alleged that Ripple's sale of XRP constituted an unregistered securities offering.

The closure of this case won't just decide XRP's future — but it could change how all digital money is regulated in the US.

How did we get here?

The Split Decision

The case took a twist in 2023 when Judge Torres made a ruling:

XRP wasn't a security when sold to retail investors on exchanges
It was a security when sold directly to institutions

This mixed judgment led to a $125 million fine for Ripple — much less than the $2 billion the SEC demanded earlier.

Both sides quickly appealed, creating a standoff that has lasted until now.

Shift in Political Winds

The likely settlement comes with rapidly changing regulatory winds in the US.

Since Trump’s swearing-in in January, the SEC has:

Dropped its case against Coinbase
Stopped fighting Kraken
Moved away from Gary Gensler's tough regulation-by-enforcement stance

This softer approach follows heavy corporate lobbying that involved huge sums of donations to political parties.

Ripple alone donated $45 million to a pro-crypto group called Fairshake and gave $5 million in XRP to Trump's inauguration fund.

What Happens Now?

If both sides drop their appeals, the $125 million fine stays and Ripple can move on.

The market already likes the news: XRP jumped almost 10% in 24 hours since the word spread about the possible settlement.

The Final Verdict

This case is about more than just Ripple — it shows how crypto rules might work in the post-Gensler world.

For everyday investors, the end brings clarity after years of confusion. For the wider crypto market, which has lost $1.5 trillion since January, clear rules could bring much-needed stability.

What started as a simple question - ‘Is XRP a security?’ - turned into a test case for all digital assets.

For XRP holders who stayed patient through the storm, that might not be very comforting—but it's the reality of an industry still finding its place in the money world.