Ripple Labs and the SEC Reach Agreement to End Long-Running Legal Dispute

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are close to concluding their long-running legal dispute.

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are nearing the completion of their protracted legal dispute, with a $50 million settlement payment emerging as a key component of the agreement.

The case, which began in December 2020 and has spanned nearly four years, centers on whether Ripple’s sale of XRP constituted an unregistered securities offering.

According to the agreement, which was submitted to Judge Analisa Torres of the Southern District of New York on Monday, 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. In exchange, the SEC will drop its remaining claims regarding Ripple’s institutional sales of XRP.

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

James Filan, a defense attorney, noted 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, former U.S. Senate candidate John Deaton 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.

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, crypto analyst John Squire, who has 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 tried everything to make an example of Ripple—discrediting the project, intimidating its supporters, and stalling a protocol aimed at challenging traditional finance. However, 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.

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.

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