Ripple CLO Declares the Company’s Fight with SEC Is Over

Ripple’s prolonged legal dispute with the U.S. Securities and Exchange Commission (SEC) is now reaching its final chapter, according to the company’s chief legal officer, Stuart Alderoty.

The high-profile case, which began in December 2020, has been closely watched by the cryptocurrency industry due to its potential impact on regulatory oversight and digital asset classifications.

Alderoty confirmed that Ripple is officially withdrawing its appeal against the SEC, signaling the final stage of the years-long legal battle. This decision follows the SEC’s recent move to drop its lawsuit against the blockchain company, a significant reversal from its original stance. The case had accused Ripple of conducting unregistered securities sales through its XRP token, leading to a drawn-out courtroom fight over the status of digital assets under U.S. law.

As part of the resolution, Ripple will only be required to pay $50 million of the original $125 million fine imposed by the U.S. District Court for the Southern District of New York. The remaining funds, which were being held in an interest-bearing escrow account, will be returned to the company. In addition, the SEC plans to ask the court to lift the injunction it had previously sought against Ripple, removing further legal restrictions on the firm.

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Alderoty framed the resolution as the final chapter in the SEC’s case against Ripple, hinting that this would be his last update on the matter. The settlement represents a major victory for Ripple, which has long contested the SEC’s claims that XRP should be classified as a security. The outcome also has broader implications for the crypto industry, as it underscores the evolving stance of U.S. regulators toward blockchain-based assets.

According to journalist Eleanor Terrett, only a few procedural steps remain before the case is officially closed. The SEC’s decision must be formally approved through a Commission vote, and final court documents must be submitted. Once these last requirements are met, the case that has shaped much of the regulatory discussion around cryptocurrencies in the U.S. will finally come to an end.

Alexander Stefanov