XRP News Today: Ripple Ends SEC Battle With $125 Million Penalty XRP Surges 4.02%

Ripple Labs, the blockchain company behind the cryptocurrency XRP, has concluded its lengthy legal battle with the U.S. Securities and Exchange Commission (SEC). On June 27, 2025, Ripple CEO Brad Garlinghouse announced that the company is withdrawing its cross-appeal in the lawsuit, which has been ongoing since December 2020. This decision marks the end of a significant chapter in the regulatory history of cryptocurrencies.

The settlement involves Ripple paying a $125 million civil penalty, a figure significantly lower than the $2 billion initially sought by the SEC. This resolution removes a large cloud of regulatory uncertainty that has hung over XRP and the broader crypto market for nearly five years. The market responded positively to the news, with XRP's price increasing by 4.02% post-announcement, reflecting investor optimism and anticipated regulatory clarity.

The legal standoff began in December 2020 when the SEC sued Ripple, alleging that the company had raised $1.3 billion through unregistered sales of XRP. Ripple countered by arguing that XRP is a digital asset and not a security. In July 2023, Judge Analisa Torres ruled that XRP itself is not a security but found Ripple guilty of securities violations in its institutional sales, resulting in a $125 million penalty. The SEC subsequently filed an appeal in January 2025, aiming to reverse parts of the earlier decision, while Ripple also filed a cross-appeal. In May, both sides proposed a tentative $50 million settlement, but Judge Torres rejected this request, leaving the original penalties in place.

Ripple's decision to drop its appeal and accept the $125 million penalty comes after Judge Torres rejected a joint request from both parties to lower the fine to $50 million and lift the permanent ban on institutional XRP sales. The judge stated that the parties had not provided sufficient grounds to alter the original judgment, giving them the option to either move forward with appeals or end the case. Ripple chose to end the case with the final ruling, focusing on building the Internet of Value.

The settlement brings clarity to the regulatory environment for Ripple and XRP, potentially paving the way for further expansion and adoption. With the legal overhang removed, Ripple can now focus on its core business activities and partnerships. The decision also opens the door for more financial institutions to engage with Ripple, as the legal risk has been mitigated. Additionally, the chances of a spot XRP ETF entering the U.S. market have increased, which could further boost the value and utility of XRP.

The court's decision that XRP is not a security in the open market remains unchanged, and both sides appear ready to move forward with the $125 million penalty and the permanent injunction on Ripple. This settlement marks a significant milestone in the ongoing efforts to define the regulatory landscape for digital assets and cryptocurrencies. The resolution of this case is expected to have broader implications for the crypto sector, potentially leading to increased investor confidence and possible legislative adjustments affecting future crypto regulations. Ripple's commitment to advancing its technology may now progress with fewer obstacles from regulatory bodies, signaling a step toward stability in the crypto regulatory landscape.