Ripple Labs has officially settled its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), agreeing to pay $50 million—a move that has sparked renewed investor confidence and led to a significant rally in the price of XRP, now one of the best-performing cryptocurrencies of the past 90 days.
Legal Case Ends, Ripple Declares Victory
The SEC first sued Ripple in December 2020, alleging that the company sold XRP as an unregistered security. The case quickly became a cornerstone in the broader debate over crypto regulation in the United States. In a key 2023 court ruling, Ripple was partially vindicated: sales to institutional investors were deemed compliant, though retail sales on public exchanges were found to have violated securities laws.
The newly announced settlement effectively brings the dispute to a close. Ripple had initially reserved $125 million in escrow in anticipation of potential penalties, but CEO Brad Garlinghouse revealed the company will recover most of that amount, including accumulated interest.
CEO Credits Shift in Regulatory Climate
Garlinghouse framed the outcome as a reflection of changing sentiment in Washington, praising both the new SEC leadership and the Trump administration for adopting a more business-friendly regulatory stance. “The former SEC under Gary Gensler was on the wrong side of the law,” Garlinghouse stated, calling the resolution a “vindication” for the company and the crypto sector more broadly.
His comments come amid broader political shifts that are reshaping U.S. policy on digital assets, with several crypto firms—including Coinbase and Gemini—also benefiting from a less aggressive regulatory posture in recent months.
XRP Leads the Market
XRP’s price surged to $2.15, reflecting more than a 5% gain in the immediate aftermath of the announcement. This performance places XRP at the top of the leaderboard among major digital assets during the current quarter. The settlement removes a cloud that had long loomed over the token, freeing it from the legal uncertainty that had limited institutional adoption and exchange listings.
Analysts believe the resolution could reignite broader interest in XRP, particularly as Ripple continues to expand its cross-border payments solutions and explore partnerships with banks and financial institutions.
