The SEC has officially filed a settlement letter in the Ripple lawsuit. Under the deal, Ripple will pay $50 million to the SEC. Another $75 million will be returned to the company from escrow. The agreement seeks to dissolve a previous injunction and close the long-standing legal battle.
Judge Torres, who ruled in 2023 that XRP is not a security when sold to retail investors, must now decide whether to approve this settlement. Ripple and the SEC made this joint request under Rule 62.1, which allows a judge to issue an “indicative ruling” during appeal.
The move would officially end a lawsuit that began in December 2020.
SEC Commissioner Crenshaw Speaks Out
But this deal isn’t sitting well with everyone inside the SEC.
Commissioner Caroline Crenshaw released a strong dissent. She believes the agreement sends the wrong signal. In her words:
“This resolution creates a regulatory vacuum that weakens investor protection. It sets a dangerous precedent.”
Crenshaw said the reduced penalty is a problem. The initial fine was $125 million. Now Ripple will only pay $50 million. According to her, this weakens the SEC’s ability to enforce crypto rules.
She also expressed concerns about unclear boundaries. If Ripple gets a softer deal, what will stop other companies from pushing legal limits?
XRP Community Celebrates, But Questions Remain
XRP fans reacted quickly. Legal analyst James Filan shared the settlement letter on Twitter, calling it a major win.
The official SEC release confirms the terms of the deal. But some investors worry that this might create confusion rather than clarity.
Meanwhile, XRP’s price reacted with optimism pushing above $2.30. Some market participants interpreted the deal as validation of Ripple’s resilience, while others echoed Crenshaw’s concern over what kind of precedent it sets.
Why This Matters for Crypto’s Future
This case was about more than Ripple. It set the tone for how the SEC might regulate crypto moving forward.
Now, we have a situation where even SEC insiders are divided. That’s not great for confidence. It also shows why clear crypto laws from Congress are needed more than ever.
If big players can settle without full clarity, smaller projects may not know how to operate safely.
Final Thoughts: A Win or Warning?
Ripple may be closing this chapter, but the wider crypto industry still faces uncertainty. Commissioner Crenshaw’s warning reminds us that regulation remains unclear. For XRP, this might feel like a victory — but it also leaves a trail of questions.As markets digest the outcome, one thing is clear: the crypto policy battle in the U.S. is far from over.
