SEC v. Ripple Labs, Inc., Bradley Garlinghouse, Christian A. Larsen — U.S. Securities and Exchange Commission Litigation Release No. 26369, dated November 28, 2025.
The SEC and Ripple Labs, along with its executives Bradley Garlinghouse and Christian Larsen, have agreed to dismiss their appeals in the Second Circuit Court of Appeals. This dismissal resolves the SEC's civil enforcement action, leaving a prior district court judgment in place. The judgment previously imposed a $125,035,150 penalty on Ripple and an injunction against violating securities registration laws.
In Plain English
Imagine two friends, the SEC and Ripple, were arguing in court. They both appealed the judge's decision to a higher court. Now, they've decided to stop appealing and settle their argument. The original decision stands, meaning Ripple has to pay a fine and follow certain rules.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- SEC Alleges Unregistered Securities Offering The Securities and Exchange Commission (SEC) initiated a civil enforcement action against Ripple Labs, Inc., and its executives Bradley Garlinghouse and Christian A. Larsen. The core allegation was that Ripple conducted an illegal, unregistered offering of its digital asset, XRP, which the SEC deemed a security.
- District Court Ruling Following the SEC's action, the district court issued a final judgment. This judgment imposed a significant civil penalty of $125,035,150 against Ripple. Additionally, it included an injunction that prohibits Ripple from violating the registration provisions of the Securities Act of 1933.
- Appeals Filed Both the SEC and Ripple disagreed with aspects of the district court's final judgment, leading to cross-appeals. The SEC appealed certain parts of the ruling, while Ripple also filed its own appeal against the judgment.
- Joint Stipulation of Dismissal On August 7, 2025, the SEC and Ripple (along with its executives) entered into a Joint Stipulation of Dismissal. This agreement was filed with the United States Court of Appeals for the Second Circuit.
- Dismissal of Appeals Pursuant to the stipulation, both the SEC's appeal (No. 24-2648) and Ripple's cross-appeal (No. 24-2705) were jointly dismissed. This action effectively resolved the ongoing appellate proceedings.
- Final Judgment Remains As a result of the dismissal of the appeals, the prior final judgment from the district court will remain in full effect. This means Ripple is still subject to the $125,035,150 civil penalty and the injunction.
- Parties Bear Own Costs The Joint Stipulation of Dismissal also stipulated that each party involved in the appeals would bear its own costs and legal fees. This is a common term in settlements that resolve disputes without a definitive win for either side on appeal.
The Enforcement Action
The SEC announced a Joint Stipulation of Dismissal to resolve its civil enforcement action against Ripple Labs, Inc., Bradley Garlinghouse, and Christian A. Larsen. This stipulation dismisses the SEC's appeal and Ripple's cross-appeal pending in the U.S. Court of Appeals for the Second Circuit. The resolution leaves in place a prior district court final judgment that imposed a $125,035,150 civil penalty against Ripple and an injunction prohibiting violations of the Securities Act of 1933 registration provisions.
Named in this action: Ripple Labs, Inc., Bradley Garlinghouse, Christian A. Larsen.