The U.S. Securities and Exchange Commission (SEC) announced on May 8, 2025, that it has reached a settlement agreement with Ripple Labs Inc., CEO Bradley Garlinghouse, and co-founder Christian Larsen. This agreement establishes a resolution framework for the long-running lawsuit, which began in December 2020. The settlement includes a joint motion from Ripple and the SEC to lift the injunction imposed under the August 7, 2024, final judgment. Furthermore, it dictates the redistribution of the $125 million penalty fee held in Ripple's account—out of which $50 million will be paid to the SEC and the remainder returned to Ripple.
If approved by the court, both parties will withdraw their currently pending appeals before the Second Circuit Court of Appeals after a limited remand to the district court. The SEC clarified that the settlement does not represent any judgment on the merits of the underlying claims and intends for this resolution to aid in its broader effort to modernize its cryptocurrency regulatory approach. Importantly, the SEC stated the decision does not serve as a precedent for similar future cases.