SEC proposes to reduce Ripple's fine in the XRP case from $125 million to $50 million
Date: 2025-06-16 Author: Henry Casey Categories: BUSINESS
The US Securities and Exchange Commission (SEC), together with Ripple Labs, has applied to the Manhattan federal court with a proposal to reduce the fine in the XRP token case. The previously imposed fine of $125 million is expected to be reduced to $50 million. The remaining funds from the escrow account are planned to be returned to the company.
This step was the result of lengthy negotiations between the parties and may mean getting closer to a final settlement of the long-standing conflict that began in late 2020. At that time, the SEC accused Ripple of raising about $1.3 billion by selling unregistered securities under the guise of XRP tokens. In response, Ripple maintained its innocence and achieved a partial victory in 2023 when Judge Annelise Torres ruled that retail sales of XRP through exchanges did not violate securities laws. At the same time, the court found violations in institutional sales.
Initially, the SEC sought a fine of $2 billion, but this amount was significantly reduced during the trial. Now the parties are proposing a final version of the agreement, which must be approved by Judge Torres.
The changes in the SEC's position became possible after Paul Atkins, known for his softer stance towards the crypto industry, took over as head of the commission during the presidency of Donald Trump. The new chairman replaces Gary Gensler, under whose leadership the agency pursued a tough policy towards crypto projects. Under the new leadership, the SEC has intensified its dialogue with industry participants and focused on developing updated regulatory principles.
However, not everyone at the SEC supports this strategy. For example, Commissioner Caroline Crenshaw has expressed concern that loosening oversight could increase risks for investors.
Also in May, the SEC filed its first application for a spot ETF based on XRP from WisdomTree, which could open a new phase of integrating cryptocurrencies into traditional financial instruments.
