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The U.S. Securities and Exchange Commission (SEC) has reached a settlement with Ripple Labs and its executives, Bradley Garlinghouse and Christian A. Larsen, to resolve a civil enforcement action. The settlement involves a joint request for a district court to lift an injunction from a previous ruling and release a $125 million penalty. This agreement indicates the SEC's intention to reform its regulatory framework for the cryptocurrency sector without passing judgment on the merits of the case. Following the potential lifting of the injunction, both parties will seek to dismiss their ongoing appeals in the Second Circuit. This action reflects the SEC's ongoing efforts to adapt its regulatory approach to the changing landscape of digital assets.
SEC Settlement Announcement
The U.S. Securities and Exchange Commission (SEC) has announced a settlement agreement with Ripple Labs, Inc. and its executives, Bradley Garlinghouse and Christian A. Larsen, resolving a civil enforcement action against them.
Settlement Agreement Framework
The agreement outlines a framework where both parties will seek a district court ruling to:
- dissolve an injunction from a previous judgment
- release a $125 million civil penalty
This settlement represents the SEC's efforts to reform its regulatory approach to the cryptocurrency industry without implying any conclusions about the merits of the case. The SEC and Ripple will also move to dismiss their ongoing appeals in the Second Circuit following the court's ruling.
Details of the Litigation
Ripple Labs, Inc., Bradley Garlinghouse, and Christian Larsen
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26306 / May 8, 2025
Case No. 1:20-cv-10832 (S.D.N.Y. filed Dec. 22, 2020)
The Securities and Exchange Commission today filed a settlement agreement entered into with defendants Ripple Labs, Inc., Bradley Garlinghouse, and Christian A. Larsen that lays out a framework for resolving the Commission’s civil enforcement action against them.
The settlement agreement provides, among other things, that:
- The Commission and Ripple would jointly request the district court to issue an indicative ruling regarding the dissolution of the injunction against Ripple.
- The district court is to release the escrow account holding the $125,035,150 civil penalty imposed by the final judgment.
- A total of $50 million will be paid to the Commission in full satisfaction of that penalty.
- The remainder will be paid to Ripple.
The Settlement Agreement further provides that, following an indication from the district court that it would dissolve the injunction and release the escrowed penalty amounts as requested, the Commission and Ripple will seek a limited remand to the district court for that relief. After that, they would move to dismiss their respective appeals from the final judgment, which are currently pending in the United States Court of Appeals for the Second Circuit.
Conclusion
The Commission’s decision to resolve this enforcement action is based on its judgment that such resolution will facilitate the Commission’s ongoing efforts to reform and renew its regulatory approach to the crypto industry. This decision does not reflect any assessment of the merits of the claims alleged in the action, nor does it necessarily indicate the Commission’s position on any other case.