Key Takeaways
- Ripple has dropped its cross-appeal after the SEC agreed to end its lawsuit, agreeing instead to pay a reduced $50 million penalty.
- The action should end a long-drawn, four-year legal battle that started under Jay Clayton. The SEC kept $50 million and returned $75 million to Ripple Labs.
- XRP consolidates between $2.35 and $2.47 as bullish momentum fades and key indicators show neutral market conditions.
Ripple Labs has settled with the US Securities and Exchange Commission (SEC) and agreed to withdraw its cross-appeal in its long-drawn lawsuit. Instead, it opts to pay a $50 million penalty. The settlement significantly reduces the financial penalty initially set at $125 million.
According to a statement on social media site X by Ripple’s Chief Legal Officer Stuart Alderoty, the resolution marks the final step in resolving the case. Alderoty stated that both parties had agreed to withdraw their respective appeals and that the SEC had agreed to cut the original penalty from $125 million to $50 million. Alderoty said:
“The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever […] the SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple.”
SEC will keep $50M of the $125M Fine
Per Alderoty’s statement, the remaining $75 million that has always been held in an escrow account will be returned to the company. The SEC will also withdraw its appeal, officially ending the case that started in December 2020 when Jay Clayton was the SEC chair.
The SEC had accused Ripple of raising $1.3 billion by allegedly selling unregistered XRP, the firm’s native token, with the regulator classifying XRP as a security. The long-drawn lawsuit became a record holder regarding enforcement actions targeting a cryptocurrency company, surprisingly filed during Clay’s last day in office. The case dragged on for four years, with Ripple claiming it had spent over $150 million on legal fees. Alderoty further said:
“The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple. The agency will also ask the Court to lift the standard injunction imposed earlier at the SEC’s request. All are subject to Commission vote, drafting of final documents, and usual court processes. That’s all folks!”
XRP Loses Initial Momentum
Last week, Ripple CEO Brad Garlinghouse announced a decision by the firm to halt the appeal process after the SEC had agreed to unconditionally drop its appeal, enabling XRP’s Ripple to follow suit—the XRP Vs. The SEC case has remained a thorn in the crypto space, with Ripple arguing that the regulator’s actions were meant to intimidate and not protect investors. Garlinghouse revealed that the lawsuit had wiped off approximately $25 billion in value for XRP holders. He went on to lay blame on former SEC Chair Gary Gensler for his aggressive approach to regulating the crypto sector.
The price of XRP went up 8% over the last seven days following the news that the SEC had dropped its intention to proceed with the case against Ripple Labs. However, the initial momentum seems to be cooling off as XRP consolidates $2.35 and $2.47, with the bullish momentum seemingly fading away. The price remains stuck between a resistance zone at $2.47 and support at $2.35, pointing towards a phase of consolidation and indecision.
Analysts predict selling pressure could increase if the current support level fails to hold, causing the price to drop to $2.22 or lower to $1.90. On the flip side, if buyers gain control, the price could surge towards $2.59 and $2.749, both of which align with previous areas of rejection. There’s potential for the uptrend to gather strength and climb as high as $2.99 in the coming days.
Conclusion
As regulatory uncertainty finally ends, Ripple will focus on growth. The company recently invested at least $2 billion in acquisitions, highlighting its belief in a dynamic crypto market. The end of this legal saga marks a turning point for Ripple Labs, XRP, and the entire crypto industry.
Frequently Asked Questions (FAQs)
What is the current status of the Ripple vs. SEC lawsuit?
As of March 2025, Ripple and the SEC are reportedly in advanced settlement discussions. The talks focus on potentially reclassifying XRP as a commodity. The SEC has settled for a lower penalty, signaling the end of the case.
How has XRP’s price reacted to legal developments?
XRP has experienced significant volatility due to the lawsuit. Following positive legal news, it surged above $3 but has since stabilized around $2.35.
What factors could drive XRP’s price to higher?
According to analysts, key factors include a favorable SEC settlement, increased institutional adoption, Ripple’s expansion of payment solutions, and the overall growth of the broader cryptocurrency market.
