Ripple (XRP) May Settle SEC Case by Paying a $50M Penalty in its Token

YEREVAN (CoinChapter.com) — Ripple may settle its long-running case with the U.S. Securities and Exchange Commission (SEC) by paying a $50 million penalty

YEREVAN (CoinChapter.com) — Ripple may settle its long-running case with the U.S. Securities and Exchange Commission (SEC) by paying a $50 million penalty in XRP, CEO Brad Garlinghouse revealed.

Garlinghouse disclosed this proposal during an April 11 interview on FOX Business. The settlement discussions come after both Ripple and the SEC dropped their appeals earlier this year.

“The SEC is going to end up with $50 million and the U.S. government gets $50 million and we talked about making that available in XRP,” Garlinghouse said.

The idea of using the XRP token instead of cash is now part of the official negotiations.

This update marks a turning point in the case. Judge Analisa Torres initially ordered a $125 million penalty for institutional investors.

However, the use of XRP payment could change how digital assets are treated in legal contexts.

Judge Initially Ordered $125M Ripple Penalty

In 2024, U.S. District Judge Analisa Torres ordered Ripple to pay a $125 million fine. The penalty was linked to Ripple’s unregistered XRP sales.

Insiders revealed that the funds were placed by Ripple into an interest-bearing account. This move stalled further action as appeals continued.

Later, both Ripple and the SEC dropped their appeals. The move brought the case closer to resolution.

A new joint court filing confirmed that the penalty has been reduced to $50 million. The parties reached a preliminary agreement and are now seeking final approval from SEC commissioners.

“The parties have reached an agreement-in-principle, subject to Commission approval, to resolve the underlying case, the Commission’s appeal, and Ripple’s cross-appeal,” the filing stated.

The plan to pay in XRP token still needs internal approval from the SEC. The crypto settlement will only proceed if commissioners vote in favor of the proposed terms.

Once approved, the parties will ask the district court to issue a final ruling.

The official document added: “There is good cause for the parties’ joint request. … The parties require additional time to obtain Commission approval … and if approved … to seek an indicative ruling from the district court.”

Until the SEC approves the plan, the case remains open. But both sides confirmed they are working to finalize the deal without returning to full litigation.

Ripple SEC Case Linked to Political And Market Events

The case attracted attention after the November 2024 U.S. elections. XRP token value increased more than 300% since that time.

Analysts linked the price surge to the return of Donald Trump, who has signaled a more open stance toward crypto. At the same time, financial institutions filed several spot ETF applications tied to XRP.

These applications reflect growing interest in digital assets as regulations evolve.

“We’re moving past the SEC’s war on crypto and entering the next phase of the market – true institutional flows integrating with decentralized finance,” Garlinghouse posted on X.

The statement highlights Ripple’s focus on restoring institutional trust in XRP.

The SEC’s new Crypto Task Force, formed in January 2025, may influence the final decision. The unit was launched one day after Chair Gary Gensler stepped down. Mark Uyeda, now the acting chair, took office on January 20.

The Task Force will review how securities laws apply to crypto firms. Ripple’s proposed XRP payment could be one of the first high-profile cases examined under this structure.

If the commissioners approve the deal, then the penalty payment will be processed and the case will close. That would bring an end to one of the most watched crypto lawsuits in U.S. history.