A pivotal movement towards resolving the long-standing legal confrontation between Ripple Labs and the U.S. SEC occurred today.
With both entities jointly petitioning for court acceptance of a revised settlement.
This proposed agreement, submitted to Judge Analisa Torres in New York’s Southern District, would see Ripple pay $50 million of an originally contemplated $125 million.
Facilitating the return of the remaining $75 million to the company and the dissolution of the existing injunction against it.
This development signifies the imminent conclusion of one of the cryptocurrency sphere’s most intensely scrutinized and extended legal challenges.
Ripple’s Strengthened Position and Accelerated Expansion Post-Litigation
The genesis of this legal entanglement dates back to December 2020, when the SEC, then helmed by Gary Gensler, levied accusations against Ripple for allegedly engaging in unregistered securities sales via its XRP token.
Notwithstanding these protracted legal battles, Ripple has seemingly maintained a commendable degree of financial solidity and is now primed for substantial expansion.
This settlement fortuitously coincides with a period where Ripple appears to be capitalizing on a changing regulatory climate under the current Trump administration.
Demonstrating its ambitious growth strategy, Ripple recently completed the notable acquisition of prime brokerage entity Hidden Road for $1.2 billion.
Additionally, there were unconfirmed reports of discussions with Circle, the issuer of the USDC stablecoin, regarding a potential $5 billion takeover, though this specific offer was reportedly not accepted.
With the lawsuit drawing to a close and the recuperation of a significant portion of the penalty, Ripple is anticipated to significantly escalate its merger and acquisition activities, both within the United States and globally.
Affirmation of XRP’s Commodity Status Ignites ETF Approval Hopes
The culmination of this case is broadly seen as reinforcing the argument that XRP functions as a commodity, not a security, a characterization that could markedly enhance the prospects for regulatory approval of an XRP-based Exchange Traded Fund (ETF).
Esteemed ETF analysts at Bloomberg have now elevated their probability assessment for the approval of five spot XRP ETFs.
Submitted by prominent firms such as Grayscale, 21Shares, WisdomTree, Bitwise, Canary, and Franklin Templeton.
To an 85% likelihood, citing anticipated shifts in SEC leadership.
This represents a substantial upgrade from their projection just over two months ago, which placed the odds of an XRP ETF approval in 2025 at 65%.
Corroborating this optimism, betting markets on Polymarket currently indicate a 77% chance of an XRP ETF being approved by the end of December.
Furthermore, Ripple’s rapport with U.S. regulatory authorities appears to be improving.
XRP Price Experiences Significant Uplift as Market Anticipates Final Settlement
In the immediate aftermath of the news that Ripple and the SEC had jointly filed for an indicative ruling to finalize their settlement, XRP, Ripple’s proprietary cryptocurrency, witnessed a pronounced appreciation, surging by over 10% in early Thursday trading.
As of this report, XRP is valued at approximately $2.28, marking a 7% increase from its value 24 hours prior.
Although a minor price retracement has occurred since the announcement.
The initial rally was potent enough to propel XRP beyond the $2.30 threshold today.
Market strategists are now closely monitoring the $2.50 resistance level, with some positing a potential upward break towards $3.00.
While the definitive court ruling remains pending, the market’s response unequivocally signals strong conviction in a favorable resolution.
Should the judiciary endorse the joint request, XRP could be primed for a substantial price escalation.
Also Read: Trump Feels Exploited After His XRP Tweet Got Pushed by Ripple Linked Lobbyist
