Ripple News: CLO Stuart Alderoty Announces Final SEC Case Twist

Ripple has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to dismiss its cross-appeal in the long-running lawsuit. The company’s Chief Legal Officer (CLO), Stuart Alderoty, confirmed the development in a statement on social media. He described it as his 

“last update on the lawsuit ever.”

The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever…

Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an…

— Stuart Alderoty (@s_alderoty) March 25, 2025

Ripple initially filed a cross-appeal after the SEC submitted its appeal notice to the Second Circuit. The company sought to challenge a ruling that classified its institutional sales as securities. This decision resulted in a $125 million fine imposed by Judge Analisa Torres and an injunction restricting future institutional XRP sales.

Settlement Terms and Reduced Fine

Under the agreement, Ripple will pay the SEC a $50 million fine instead of the original $125 million. Ripple had previously deposited the full amount in an interest-bearing account, awaiting the final outcome of the case. Now, with the settlement in place, the remaining $75 million will be returned to the company.

Additionally, the SEC has agreed to request that the court lift the injunction that restricted Ripple’s ability to conduct institutional XRP sales in the U.S. Alderoty noted that the agreement is subject to “formal approval at the SEC, usual court processes, and the drafting of final documents.” Once completed, the settlement will be finalized.

Next Steps in the Legal Process

The SEC is expected to discuss the Ripple case in a closed meeting scheduled for tomorrow. During this session, commissioners will likely vote on dismissing the appeal. If approved, an official announcement is expected to follow.

Following the statement, both parties will work with the court to make the resolution official. This decision would bring an end to the legal battle that has lasted for over four years.

Reactions from the Crypto Community

The crypto community has responded to the settlement with strong interest. Many have praised Ripple for securing more favorable terms, including a lower fine and the removal of sales restrictions. Some believe the outcome strengthens Ripple’s position in the market.

Attorney Bill Morgan commented on the development, suggesting that Ripple may “adopt a different approach” when selling XRP to U.S. institutional clients. He noted that the company could adjust its sales structure to avoid potential regulatory concerns in the future.

But they would have to do it a different way as the way they previously did it was found to be an investment contract and, although the injunction is lifted, the court finding has not been reversed on the cross appeal which is now not being pursued. https://t.co/Au5gqd8uMl

— bill morgan (@Belisarius2020) March 25, 2025

With this settlement, Ripple moves closer to putting the legal dispute behind it. The crypto industry will be watching for the final court approval and any further regulatory updates that could impact XRP’s market standing.