Court Hints at Ending XRP Legal Drama with $50M Settlement Push

Ripple and the U.S. Securities and Exchange Commission (SEC) are seeking court approval to finalize a settlement in their long-standing legal dispute over XRP. In a joint motion submitted to the Manhattan District Court, both parties requested modifications to the existing judgment, including the removal of the injunction on XRP and a reduction of the civil penalty from $125 million to $50 million. The proposed changes aim to facilitate a resolution and avoid protracted appeals. This development marks a potential turning point for the case, though the final approval of the court remains a prerequisite for the settlement to take effect.

The legal battle, which has been ongoing since December 2020, has centered on whether XRP should be classified as a security under the Howey test. In a previous ruling, Judge Analisa Torres classified XRP sales to retail investors as non-securities, while institutional sales were deemed to qualify as securities. The joint motion seeks to modify this ruling to promote settlement and remove uncertainty for both parties. Legal experts have emphasized that the success of this settlement hinges entirely on the court's approval; if denied, the case could return to the appeals process.

Alongside the XRP legal developments, the SEC has taken broader regulatory actions, including withdrawing key proposals from the Gary Gensler era. These proposals had targeted DeFi platforms and imposed strict custody requirements on crypto advisors. The withdrawal signals a shift in regulatory focus and has been viewed as a positive development for the broader crypto industry. Projects such as Ethereum, Solana, and Arbitrum are expected to benefit from the increased regulatory clarity, as it fosters an environment more conducive to innovation and adoption.

XRP has also experienced a notable price increase, with recent intraday chart data indicating a bullish breakout. The XRPUSD pair closed above the key resistance level of 3.20250, suggesting a potential continuation of the upward trend. Analysts have attributed the rise to a combination of factors, including the psychological support of the $2 level, regulatory developments, and increased institutional interest in XRP's use in cross-border payments.

Ripple has expanded its influence beyond the XRP legal battle by making strategic moves in other areas. In January 2025, the company announced a $100,000 XRP donation to support wildfire relief efforts in California, which was matched by entrepreneur Jared Isaacman. Additionally, Ripple’s XRP Ledger is expected to be adopted by all banks in Japan by 2025, according to SBI CEO Yoshitaka Kitao, further solidifying XRP’s role in global financial infrastructure. The company has also expanded into decentralized finance (DeFi) through a partnership with Chainlink, integrating Ripple's RLUSD stablecoin with DeFi applications on the Ethereum blockchain.

Looking ahead, price projections for XRP vary widely. Conservative estimates suggest a 2025 price range of $1.35–$2.50, while more optimistic forecasts project prices as high as $70 by 2030. Longer-term predictions are tied to the broader adoption of XRP in fintech applications and potential integration into traditional finance by 2027–2028. The feasibility of reaching a $500 price point is considered unlikely in the near term but theoretically possible under conditions of widespread global payment adoption beyond 2030.

Ripple's recent activities also include high-profile interactions, such as a private dinner between CEO Brad Garlinghouse and President-elect Donald Trump, which has sparked speculation about the future of the company's legal dispute with the SEC. Garlinghouse described the meeting as a positive start to 2025, indicating potential shifts in regulatory and political dynamics that could influence the outcome of the XRP case.