The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have reached a settlement agreement that concludes the long-standing legal dispute that began four and a half years ago. This agreement, announced on May 8, 2025, involves both parties jointly requesting the court to lift the injunction against Ripple imposed in August 2024. The settlement entails releasing funds from the $125 million escrow account; $50 million will be paid to the SEC and the remaining $75 million will be returned to Ripple Labs. This agreement also means that both parties will withdraw their appeals currently under review by the Second Circuit Court of Appeals, if granted. The SEC emphasizes this settlement is designed to aid in the development of its cryptocurrency regulatory framework, not as an acknowledgement of the merit of the case, nor a precedent for other legal challenges.