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ZyCrypto 2025-05-12 14:46:28

Crypto’s David Slays Goliath: How Ripple Turned a SEC Lawsuit into a Strategic Win for XRP

In a major development for the crypto industry, the U.S. Securities and Exchange Commission (SEC) has filed a settlement agreement with Ripple Labs, potentially ending one of crypto’s most pivotal legal battles. The letter, submitted to the U.S. District Court for the Southern District of New York, reveals that Ripple and the SEC have reached terms that would formally end the long-standing injunction against Ripple. The agreement also releases $125 million held in escrow. Under the deal, Ripple will pay the SEC $50 million in civil penalties , while the remaining $75 million will be returned to the company. The letter further stated, “ The Parties engaged in good-faith negotiations to resolve this litigation in its entirety… The Settlement Agreement … is a final resolution as to the conduct alleged in the amended complaint.” The lawsuit, filed in December 2020, accused Ripple of conducting an unregistered securities offering through the sale of XRP. Ripple has consistently denied the allegations, maintaining that XRP is not a security. The case has since become a defining legal standoff, raising critical questions about regulatory clarity and the SEC’s oversight of digital assets. Earlier this month Ripple’s Chief Legal Officer, Stuart Alderoty hinted at the case nearing its end , noting that the SEC has not only dropped its appeal against Ripple but also backed off cases against all U.S. crypto firms. “You can’t enforce laws that were never clearly defined,” he said, adding, “ It’s time to clean up the mess, leave the courtroom behind, and focus on building.” That said, while final court approval is still pending, the proposed settlement is a major turning point for Ripple and the broader crypto industry. The next steps hinge on Judge Torres issuing an indicative ruling to dissolve the injunction and release the escrow funds, $50 million to the SEC and the rest to Ripple. Both parties will request a limited remand from the Second Circuit to finalize the settlement if granted. Once the funds are distributed, the appeals from both sides will be withdrawn, officially bringing the case to a close. Meanwhile, following the announcement, XRP’s price surged nearly 10%, jumping from around $2.12 to a peak of $2.31 before slightly cooling to approximately $2.56 at press time. Elsewhere, the XRP community expressed optimism for a major price surge having scored another major win with one user noting that “ the moment XRP is unchained. The floodgates open. The narrative shifts. This is where the FOMO starts.” According to analyst Lingrid, XRP shows bullish momentum after reclaiming a key support level and breaking short-term resistance. The next target zone could be around $2.40 if the rally continues.

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