Ripple Could Use XRP Token to Pay SEC Fine

Ripple's long-running legal clash with the US Securities and Exchange Commission (SEC) appears to be nearing its final chapter.

The final chapter of Ripple’s saga with the US Securities and Exchange Commission (SEC) appears to be approaching, but a surprising detail has emerged from the ongoing settlement talks.

According to a report by The Block, which cites multiple sources, Ripple could pay its reduced $50 million penalty in its native token, XRP.

The idea was apparently floated during discussions about wrapping up the case.

The development comes after both parties agreed to drop their appeals, bringing them one step closer to settling the multi-year legal battle.

Earlier this year, Judge Analisa Torres set the final sum for the SEC’s penalty at $125 million, which is to be paid from an interest-bearing account where the funds have been held since 2024.

This ruling was made in the final judgment on the case, which also saw the SEC lose its claims that executives Garlinghouse and Chris Scarman engaged in fraud.

However, the appeals process stalled any further action, and both sides reached a deal to drop these appeals and pursue a settlement.

This agreement will see the regulator collect a reduced sum of $50 million, while the government will receive an additional $50 million, according to a recent joint filing.

The parties also stated that they have reached a preliminary agreement for the settlement, pending final approval from the SEC’s commissioners.

Once internal reviews are complete, they plan to request a formal ruling from the district court.

“There is good cause for the parties’ joint request that this Court put these appeals in abeyance. The parties have reached an agreement-in-principle, subject to Commission approval, to resolve the underlying case, the Commission’s appeal, and Ripple’s cross-appeal. The parties require additional time to obtain Commission approval for this agreement-in-principle, and if approved by the Commission, to seek an indicative ruling from the district court,” the filing stated.

If the commission votes in favor, this case could conclude one of the most closely watched regulatory battles in crypto history.

What’s more, the use of XRP for the settlement could mark a significant shift in the SEC’s approach to digital assets.

This turnaround would represent a major regulatory shift and could trigger further bullish momentum for the token.

Since Donald Trump’s election victory in November 2024, investor confidence in XRP has grown sharply, pushing the token’s value up by more than 300%.

At the same time, institutional interest continues to rise, as seen in the wave of spot exchange-traded fund applications tied to the token.