Ripple has decided to withdraw its appeal against the U.S. Securities and Exchange Commission, as stated by the company’s chief legal officer, Stuart Alderoty.
Just days after the SEC chose to abandon its case against Ripple, the creator of XRP (XRP), Ripple has confirmed its own withdrawal of the counter-appeal.
In a message on X, Alderoty mentioned that both parties have agreed not only to retract their appeals but have also reached an agreement on a reduced penalty, bringing the original fine of $125 million down to $50 million.
“This marks the final touches on the matter—and what should be my last update regarding the SEC v. Ripple,” Alderoty stated. “Last week, the SEC consented to drop its appeal unconditionally. Ripple has now also decided to withdraw its cross-appeal. The SEC will retain $50 million of the original $125 million penalty (which is currently held in a cash escrow with interest), and the remaining funds will be returned to Ripple.”
The SEC is also expected to petition Judge Analisa Torres to lift the standard “obey the law” injunction imposed on Ripple following the agency’s motion.
Not a Done Deal
Nevertheless, these agreements still require a vote by the Commission and need to complete final documentation along with other typical court procedures. Once everything is finalized, the Ripple versus SEC case, which commenced in December 2020, will come to a close.
This recent development follows a significant shift from the SEC after the departure of former chair Gary Gensler. Reports have indicated that the agency is winding down its case against Ripple as well.
Under the leadership of interim chair Mark Uyeda, the SEC has recently closed various high-profile investigations and lawsuits, including those involving crypto exchanges Coinbase and Kraken.
A more innovation-friendly approach has characterized this new direction, moving away from the enforcement-centric regulation seen during Gensler’s time. Among the initiatives is a series of roundtable meetings conducted by the Crypto Task Force, now spearheaded by Commissioner Hester Peirce.
In the interim, Paul Atkins, nominated by U.S. President Donald Trump, is anticipated to take the helm of the SEC in the coming weeks.