A recent post by user Karla160 about the proposed settlement between Ripple and the SEC stirred the XRP community. However, legal expert Bill Morgan quickly clarified the situation, pointing out the facts.
Clarification of Proposed Settlement
The $50 million figure circulating in discussions refers to Ripple’s finalized civil penalty. In August 2024, Judge Analisa Torres ordered Ripple to place $125 million in escrow due to their institutional XRP sales being deemed unregistered securities offerings.
After lengthy negotiations, Ripple proposed a significantly reduced penalty of $10 million, but both parties ultimately agreed on a $50 million penalty, to be paid from the escrowed funds. The remaining $75 million will be returned to Ripple.
Key Aspects of the SEC Case
Another significant detail revolves around the SEC’s previous attempts to challenge Judge Torres’s ruling from July 2023. That ruling established that Ripple's programmatic XRP sales do not constitute securities transactions. The court identified violations only in institutional sales, involving direct transactions with singular investors.
In October 2024, the SEC filed a notice of appeal, intending to overturn portions of the ruling. However, in March 2025, the SEC withdrew its appeal, acknowledging that programmatic XRP sales are outside securities regulation.
Prospects for Legal Closure
All eyes are now on Judge Torres, who must decide whether to approve the terms of the settlement. A favorable ruling could mark the conclusion of a legal battle that began in December 2020 and significantly impact the regulatory landscape for digital assets in the U.S.
Bill Morgan’s correction highlights the importance of legal accuracy and informed analysis, particularly in high-profile crypto litigation.
The Ripple and SEC legal process is nearing its conclusion. Given the facts, Ripple may close one of the most significant chapters in its corporate history.
