Ripple and SEC Agree to Release Escrow Funds Amid Settlement

According to Cointelegraph, Ripple and the United States Securities and Exchange Commission (SEC) have jointly filed a motion to release $125 million held in escrow to cover settlement costs mandated by the court. The agreement stipulates that $50 million will be allocated to the SEC as a civil penalty against Ripple, while the remaining $75 million will be returned to Ripple, pending court approval. This resolution aims to conserve resources by eliminating the need for further appeals and bringing an end to over four years of litigation. The SEC's lawsuit against Ripple has been a pivotal case for cryptocurrency regulations in the United States. Concluding this litigation marks a significant milestone for an industry that has largely achieved legal recognition in the country. The case gained attention in July 2023 when Judge Analisa Torres ruled that secondary sales of XRP tokens do not classify as securities, granting a partial victory to Ripple and the broader crypto sector. However, the ruling also determined that XRP sales during funding rounds were securities transactions, as they were offered as compensation for investment in a business enterprise. Following this, Ripple was ordered to pay a $125 million penalty to the SEC in August 2024. The SEC, dissatisfied with the ruling, filed an appeal in October 2024, just before the U.S. presidential election. Ripple's CEO, Brad Garlinghouse, later announced in March 2025 that the SEC had decided to drop its appeal, a decision he celebrated as the effective conclusion of the case. Ripple subsequently agreed to withdraw its cross-appeal, securing a refund from a lower court that allowed the company to retain $75 million of the penalty initially imposed. This development signifies a turning point in the legal landscape for cryptocurrencies in the United States, as the resolution of this high-profile case may influence future regulatory approaches. The outcome underscores the ongoing evolution of legal frameworks surrounding digital assets, as stakeholders continue to navigate the complexities of integrating cryptocurrencies into existing financial systems.