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Stuart Alderoty Delivers His Last Update on Ripple-SEC Lawsuit
Cryptotale Staff – March 26, 2025
Last Updated: March 26, 2025
2 minutes read
With a $50 million settlement, the long-standing legal battle between Ripple and the Securities and Exchange Commission (SEC) is finally coming to an end. The lawsuit was initiated in December 2020 when the SEC filed a complaint against Ripple Labs, CEO Brad Garlinghouse, and co-founder Christian Larsen, alleging they raised over $1.3 billion through unregistered securities by selling XRP.
In a significant turn of events, both parties have reportedly agreed to drop their cross-appeals, marking a major milestone in the five-year-long dispute. Ripple’s Chief Legal Officer Stuart Alderoty has shared his final update on the SEC v Ripple case, outlining the recent developments.
The legal tangle originated from the SEC’s claim that Ripple’s sales of XRP to institutional investors constituted unregistered securities, while those made through exchanges did not. However, in a crucial ruling in July 2023, Judge Analisa Torres delivered a partial win for Ripple, determining that institutional investor sales were indeed unregistered securities, whereas public exchange sales were exempt. This key finding set a precedent regarding the categorization of cryptocurrencies based on their method of sale.
Following this ruling, the SEC imposed a $2 billion penalty against Ripple, with the company arguing for a significantly reduced fine. The conflict escalated further in October 2024 when the SEC filed an appeal seeking a higher penalty, prompting Ripple to lodge a cross-appeal.
In light of recent developments, it appears that both parties have decided to put this contentious matter behind them, ultimately agreeing to settle for a $50 million payment. This resolution could significantly impact how the SEC handles future crypto regulations.
Stuart Alderoty’s final update highlights the significance of these events in reshaping the regulatory landscape of the rapidly evolving crypto industry.
Source: https://cryptotale.org/stuart-alderoty-delivers-his-last-update-on-ripple-sec-lawsuit/
