- Ripple ends SEC dispute, settling for $50M as regulatory shifts favor clear crypto laws over enforcement actions.
- SEC’s softened stance on crypto follows Gensler’s exit, signaling a shift toward legislative clarity in digital asset regulation.
- Ripple expands into crypto custody, eyeing growing demand post-ETF approvals, competing with Coinbase, Citi, and BNY Mellon.
Eleanor Terrett reported that Ripple has agreed to drop its appeal against the SEC, reducing its fine to $50 million. The SEC will also request Judge Torres to lift the ‘obey the law’ injunction on Ripple. Once the Commission votes and court documents are finalized, the Ripple vs. SEC case will officially conclude.
Stuart Alderoty, Ripple’s Chief Legal Officer, confirmed the development, stating that the SEC agreed to drop its appeal unconditionally. Ripple responded by withdrawing the cross-appeal. In order to ensure a prompt resolution, Ripple has already deposited the $50 million fine in an interest-bearing escrow account. The action marks the conclusion of a court case that started in December 2020.
SEC Retreats Amid Regulatory Shifts
Judge Torres ruled in July 2023 that XRP sales to retail investors were not securities. However, institutional sales required compliance with securities laws. In August 2024, she imposed a $125 million fine, far below the SEC’s initial $1.9 billion demand. The SEC’s retreat follows former Chair Gary Gensler’s resignation in January. The agency has since eased its aggressive enforcement approach against crypto firms.
The case was a significant test of the SEC’s regulatory power over digital assets. Bitget’s COO, Vuga Zade, noted that the shift suggests a preference for clear legislation over lawsuits. The decision also aligns with broader market trends favoring regulatory clarity for cryptocurrencies.
Ripple’s Strategic Expansion into Crypto Custody
Ripple Labs submitted a trademark application for “Ripple Custody” on February 25. The action shows that the business plans to grow into cryptocurrency custody services. The document lists important use cases, such as custodial services for managing finances and storing cryptocurrencies.
For protecting digital assets from attacks like security breaches and loss of private keys, there is a requirement for cryptocurrency custody services. Particularly following the United States ban in 2024 on cryptocurrency exchange-traded funds (ETFs), there has been growing demand for such services. Industry powerhouses already on board include household names Coinbase, Citi, and BNY Mellon. Ripple launched its custody product in October 2024 to diversify its revenue streams.
XRP is currently trading at $2.46, reflecting a 1.04% increase in the last 24 hours, with a 24-hour volume of $2.69 billion.
