U.S. SEC Chair Paul Atkins Reflects on Ripple Legal Battle Resolution

The long-awaited resolution of the legal battle between the U.S. Securities and Exchange Commission (SEC) and enterprise blockchain company Ripple has finally come to a close. SEC Chair Paul Atkins shared his thoughts on the matter, emphasizing the opportunity to shift focus towards policy drafting.

A Look Back at the Four-Year Legal Saga

The SEC initiated legal proceedings against Ripple in December 2020 under the leadership of former Chair Jay Clayton, accusing the company, CEO Brad Garlinghouse, and chairman Chris Larsen of selling unregistered securities. Despite hopes for a different outcome under Chair Gary Gensler, the SEC continued its regulatory approach through enforcement actions.

After a series of legal twists and turns, Ripple emerged victorious in July 2023 when District Judge Analisa Torres ruled that secondary XRP sales did not constitute securities. A final judgment in August 2024 imposed a $125 million fine on Ripple and a permanent injunction against selling XRP tokens to U.S. institutions.

The legal battle took an unexpected turn when the SEC filed an appeal in October, followed by Ripple’s cross-appeal, prolonging the resolution process.

The Long-Awaited Resolution

Following Gensler’s departure in January, Ripple and the SEC reached a settlement agreement to reduce the penalty and remove the injunction. However, Judge Torres upheld the original ruling, prompting Ripple to withdraw its cross-appeal. In August, the SEC reciprocated, officially bringing an end to the contentious legal battle.

Commissioner Hester Peirce expressed relief at the conclusion of the case, highlighting the opportunity for the SEC to shift focus towards developing a clear regulatory framework for the crypto industry.