XRP poised to enter a new phase

Once accepted, the settlement, which is currently awaiting approval from the District Court Judge Analisa Torres, will bring Ripple an inch closer to dissolving its four-year-long legal battle with the SEC.

The U.S. Securities and Exchange Commission (SEC) has reached a settlement agreement with cryptocurrency firm Ripple to pay $50 million in an instance of the regulator settling a case. The sum is a massive drop from the initial $125 million fine.

The move comes after a four-year-long legal battle that began in December 2019. The SEC sued Ripple in 2019 for allegedly selling unregistered securities to raise $1.3 billion through an initial coin offering (ICO) of its XRP token.

The case had major implications for the broader crypto industry, with implications for how digital assets are classified and regulated.

The announced settlement will now go to the District Court Judge Analisa Torres, who will decide whether to accept it. Once accepted, the case will be closed.

As market participants prepare for the weeks ahead, community members remain curious about what the settlement agreement truly means and what it could mean for Ripple and the XRP token in the long term.

XRP poised to enter a new phase

In a post shared with X, a pseudonymous XRP enthusiast breaks down the expected shift that could follow the settlement’s acceptance and the case’s dissolution.

Approval of the settlement could trigger a major change in the XRP token’s market position.

In the long run, regulatory clarity is a key upside that could be attained, as the SEC’s decision further solidifies Ripple’s long-standing claim that the crypto asset is not a security.

With XRP being viewed as a crypto asset comes an increase in credibility among existing holders and investors looking to make a big entrance.

Legal risks are also expected to flatten for both Ripple and other crypto businesses, such as exchanges, crypto service providers, and crypto investors.

Dissolution promises mass adoption for Ripple

Mass adoption will likely be a notable by-product for the broader Ripple ecosystem, especially with the rise in demand for Spot XRP ETFs.

According to Polymarket's predictions, there is a 70% chance of approval by 2026. With leading investment firms like 21Shares and Bitwise filing for approval, a Spot ETF could unlock significant institutional capital.

It is worth noting that Ripple's adoption has been continuous over the years, with more than 300 financial institutions already utilizing its technology. Should the U.S. regulatory climate become even more favorable, the numbers will likely go even higher.