TLDR
- SEC Chair Paul Atkins comments on the conclusion of the Ripple lawsuit saga.
-
SEC’s settlement with Ripple allows focus to shift to crypto regulations.
-
Ripple emerged victorious in the lawsuit, leading to a settlement.
-
Hester Peirce welcomed the end of the case, urging focus on crypto framework.
The long-standing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple has officially concluded, marking the end of a saga that began in December 2020. SEC Chair Paul Atkins broke his silence on the matter, commenting on the resolution. Atkins noted that with this chapter closed, the agency can now focus its attention on drafting clearer and more comprehensive regulations for the cryptocurrency market.
Ripple was accused by the SEC of selling unregistered securities, specifically XRP tokens. The lawsuit was initiated under the leadership of former SEC Chair Jay Clayton, just days before he left office. Despite early challenges, Ripple, along with its CEO Brad Garlinghouse and Chairman Chris Larsen, eventually emerged victorious in the case.
Ripple Wins Legal Battle After Years of Litigation
The legal fight between the SEC and Ripple has been a complex and drawn-out process. The initial lawsuit in 2020 accused Ripple of selling unregistered securities by offering XRP to institutional investors. This sparked a lengthy battle in the courts, with Ripple arguing that XRP was not a security and that its sale did not violate U.S. securities laws.
The turning point in the case came in July 2023, when District Judge Analisa Torres ruled that secondary sales of XRP did not qualify as securities transactions. The judge imposed a $125 million fine on Ripple for past violations and issued a permanent injunction preventing Ripple from selling XRP to institutional investors in the U.S.
Commissioner Peirce is right. With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table. Our focus should be on building a clear regulatory framework that fosters innovation while protecting investors. #ProjectCrypto
— Paul Atkins (@SECPaulSAtkins) August 11, 2025
In August 2024, a final judgment was issued, but the case was not over. After an appeal from the SEC and a cross-appeal from Ripple, both parties reached a settlement. The settlement reduced Ripple’s penalty and removed the injunction, ending the legal battle. This marked a significant victory for Ripple, allowing the company to continue its operations without the constraints initially imposed by the SEC.
Shift in SEC’s Focus Following Ripple Settlement
With the legal matter finally settled, SEC Chair Paul Atkins highlighted the opportunity for the SEC to focus on drafting clearer regulations for the cryptocurrency market. In a social media post, Atkins commented, “With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table.”
This shift in focus comes as the SEC aims to create a more comprehensive regulatory framework for digital assets, something that has been a long-term priority for the agency.
Atkins’ remarks signal a transition from litigation to policy-making, allowing the SEC to concentrate on shaping regulations that address the complexities of cryptocurrencies. This change could provide greater clarity for the industry and reduce uncertainty for companies operating in the space.
Hester Peirce Welcomes Ripple Case Resolution
SEC Commissioner Hester Peirce, often known as a pro-crypto voice within the SEC, also welcomed the resolution of the Ripple lawsuit. Peirce stated that the conclusion of the case now allows the SEC to focus on creating a clear regulatory framework for cryptocurrencies.
She emphasized the importance of shifting away from enforcement actions and toward more proactive regulatory efforts.
Peirce’s statement aligns with ongoing calls within the cryptocurrency industry for clearer and more consistent rules. With the Ripple case now behind them, the SEC has the opportunity to focus on building a framework that fosters innovation while ensuring investor protection.
