Ripple and SEC Finalize Agreement with $50 Million Settlement Payment

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are close to concluding their long-running legal dispute. The two parties have reached an agreement involving a $50 million settlement payment. The case, which has spanned nearly four years, centered on whether Ripple’s sale of XRP constituted an unregistered securities offering.

Based on the agreement, Ripple will pay a $50 million civil penalty to the SEC and receive $125 million back from escrow, which will help dissolve a court-imposed injunction and redistribute frozen funds. A joint motion filed by Ripple and the SEC on May 8 and submitted to Judge Analisa Torres in the Southern District of New York reveals that, in exchange, the SEC will drop its remaining claims regarding Ripple’s institutional sales of XRP. While the case isn’t officially over, legal experts believe the procedural path ahead is now clear.

Experts Expect Injunction to Be Lifted as Agreement Moves Toward Final Approval

James Filan, a defense attorney, stated that the next step involves Judge Torres issuing an “indicative ruling” on whether to dissolve the injunction and release the escrowed funds—$50 million to the SEC and the rest to Ripple. If agreed, both parties will file a joint motion with the U.S. Court of Appeals to remand the case back to Judge Torres for final relief. Following this, they will request the lifting of the injunction and distribution of funds, after which both parties will dismiss their appeals, closing the case.

Reacting to the latest updates, John Deaton, a former U.S. Senate candidate, said it would be shocking if Judge Torres did not agree to lift the injunction, given the mutual agreement between the parties. He noted that the settlement is perfect and that it will be difficult for the court to refuse moving forward with the agreement. He stated:

It would be absolutely shocking for Judge Torres to not agree to lift the injunction under these circumstances. I don’t want to jinx anything but the below agreement makes perfect sense and it’s difficult to see it not going through.

Similarly, John Squire, a crypto analyst with over 500,000 followers, referred to the agreement as a “symbolic closure” to a challenging period marked by heavy regulation and scrutiny of XRP. He pointed out that the SEC had tried everything to make an example of Ripple—discrediting the project, intimidating its supporters, and stalling a protocol aimed at challenging traditional finance. However, Squire noted, those efforts ultimately failed.

According to Squire, the $50 million penalty is not just a fine; it represents a “surrender” on the part of the SEC. He wrote:

This isn’t a fine, it’s a surrender. It’s the regulator conceding (without admitting) that they couldn’t prove XRP is a security, nor convince the courts that Ripple broke the law.

Squire further commented that the agreement clears a major hurdle in Ripple’s global operations and paves the way for growth. He noted that XRP is now uniquely positioned, having passed through the most intense regulatory scrutiny of any top-tier crypto asset and emerged legally stronger.

Now comes the rebound. Exchanges come back. Institutions start looking. Builders return to XRPL. And a new narrative begins: XRP survived the firestorm and came out stronger.

Ripple’s XRP Rallies After Deal, Breaking Key Resistance Levels

These sentiments are being reflected in XRP’s market performance. In the past 24 hours, the coin has appreciated by more than 8%, as traders and investors responded positively to the news of the agreement. The price action has seen XRP break out of a four-month descending channel. Following this surge, the next major resistance lies at $2.50. A move past this level could be followed by a potential rally toward $2.90. If the upward momentum remains strong, the price of XRP could hit $3.00.

The broader crypto market is also surging, with Bitcoin trading above $100,000 for the first time since February, contributing to a bullish sentiment across major assets. This wave of optimism is spilling over to altcoins like XRP, which could see accelerated inflows and renewed interest from both retail and institutional investors.

Ifeoluwa O.

Ifeoluwa specializes in Web3 writing and marketing, with over 5 years of experience creating insightful and strategic content. Beyond this, he trades crypto and is skilled at conducting technical, fundamental, and on-chain analyses.

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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.