The U.S. Securities & Exchange Commission announced a settlement to resolve its civil enforcement action against Ripple Labs, Inc. over XRP sales, providing for the return to Ripple of over USD 75 million held in escrow and seeking to vacate the court-issued injunction. SEC Commissioner Caroline A. Crenshaw published a statement dissenting from the settlement. The case dates to the SEC’s 2020 lawsuit alleging Ripple and its leaders raised capital through unregistered securities offerings of XRP. The district court held that Ripple’s institutional sales of XRP were unregistered offers and sales of investment contracts in violation of Section 5 of the Securities Act of 1933, while other secondary offers and sales were not, and it imposed a permanent injunction and a civil penalty of over USD 125 million, with both sides appealing. Crenshaw argued the settlement would effectively unwind key relief the SEC had obtained while leaving the summary judgment ruling formally untouched, and she linked it to a broader shift away from crypto registration enforcement as the agency points to future work by its Crypto Task Force. Crenshaw urged the courts to closely review the Commission’s effort to claw back claims and remedies it previously pursued in the litigation.
U.S. Securities & Exchange Commission 2025-05-08
U.S. Securities & Exchange Commission settles Ripple Labs XRP case with return of over USD 75 million and move to vacate injunction
The U.S. SEC settled its enforcement action against Ripple Labs over XRP sales, allowing Ripple to reclaim over USD 75 million in escrow and seeking to vacate a court injunction. SEC Commissioner Caroline A. Crenshaw dissented, arguing the settlement undermines key relief and signals a shift from crypto registration enforcement. The case began with a 2020 lawsuit alleging Ripple's unregistered securities offerings, with a court ruling that institutional sales violated the Securities Act of 1933.