Let’s Examine The Consequences Of The Ripple v/s SEC: $50M Resolution Signals A New Era

Initially, Judge Torres’s determination at the district appellate court in July 2023 concluded that XRP sales to retail investors were not categorized as securities, except for institutional investors, and levied a diminished fine of $125 million, significantly lower than the SEC’s demand of $1.9 billion. Moreover, the court issued an injunction that barred the company from selling XRP to institutions.

With Ripple now consenting to pay the diminished fine, both parties have decided to withdraw their respective appeals, effectively concluding this legal matter.

The final touches and what should be my last report on SEC v Ripple ever…

Last week, the SEC decided to withdraw its appeal without conditions. @Ripple has now concurred to drop its cross-appeal. The SEC will retain $50M of the $125M fine (already held in an…

— Stuart Alderoty (@s_alderoty) March 25, 2025

During this period, the SEC’s action against Ripple was among the most prominent cases in the crypto sector, as its ruling could potentially establish a precedent for how digital assets may be classified and regulated in the US in the future.

The resolution of this prolonged case follows Ripple CEO Brad Garlinghouse’s statement last week, where he indicated that the SEC would be dismissing its case against the company.

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CTO Downplays the Win, States Company Must Follow the Law

Following the conclusion of the legal conflict between Ripple and the SEC, analysts speculated that the SEC would permit Ripple to crypto market XRP to institutional investors once it rescinded the permanent injunction.

Ripple CTO David Schwartz, however, has downplayed this victory, underscoring that the SEC’s removal of the injunction does not alter Ripple’s legal responsibilities. According to Schwartz, the firm must comply with Judge Torres’s ruling, regardless of the injunction’s presence.

He believes that the lifting of the injunction is merely a segment of a series of comprehensive reforms that the SEC is implementing under the new administration.

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US Continues to be a Vital Market for Ripple

The US continues to be a crucial market for Ripple as it has maintained its operations in payments and securities despite the legal hurdles it encountered. With these uncertainties now resolved, Ripple aims to expand its American clientele rather than solely depending on international customers.

As the political atmosphere in the US has transitioned to being more welcoming toward crypto under President Trump’s administration, this legal resolution has occurred at an opportune moment.

Crypto-supportive policies are popular. For instance, the Office of the Comptroller of the Currency (OCC) has started permitting US banks and other savings institutions to offer stablecoin and crypto custody services without prior consent.

With traditional banking institutions now embracing blockchain-based financial solutions, opportunities are arising for Ripple to collaborate with banks on cross-border payment systems utilizing its XRP crypto token.

Nevertheless, the market’s response to Ripple’s victory has been relatively muted, with XRP’s price remaining mostly stable in recent days.

The Head of Growth at WeFi, a decentralized on-chain bank, remarked, “The market’s reaction to Ripple’s achievement has been subdued. The case has been ongoing since 2020, and its resolution was largely anticipated.”

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The post Let’s Look At The Aftermath Of The Ripple v/s SEC: $50M Settlement Marks New Chapter appeared first on 99Bitcoins.