XRP News Today: Ripple Pays $50 Million Penalty, XRP Surges 29%

Ripple has fully paid the $125 million penalty imposed by the SEC in cash, contrary to rumors suggesting the payment would be made in XRP tokens. The court order explicitly required the fine to be paid in cash, ruling out any cryptocurrency payment options. This clarification comes from Marc Fagel, a former SEC lawyer familiar with the regulatory body's procedures. Despite the payment, the lawsuit remains unresolved due to pending appeals from both Ripple and the SEC.

Ripple was initially ordered to pay the full $125 million, but the latest settlement terms see the company actually paying $50 million, with the remaining $75 million held in an escrow account until all court procedures are finalized. The delay in closing the case is attributed to several unresolved legal and procedural issues. The SEC appealed the finding that XRP sales on public exchanges do not violate securities laws, while Ripple appealed the ruling that its institutional sales of XRP were unregistered securities offerings. Both parties must officially withdraw their appeals for the court order to take effect and for the funds to be released to the SEC. This process is standard and typically takes about one to two months after the vote.

Despite the ongoing legal battle, XRP has shown strong momentum in the market. In the past two weeks, it climbed to the third spot among top cryptocurrencies by market cap. The token surged 29% in the last week and gained over 7.4% in the past 24 hours, now trading around $3.15. Analysts suggest that XRP is targeting its previous all-time high, and a decisive break above $3.30 could open the door for a major rally, potentially pushing the price closer to record levels.

Ripple's Chief Technology Officer, David Schwartz, recently commented on the price movements of XRP, noting that the token's price often does not align with its true value or utility. Schwartz emphasized that XRP's use cases extend beyond the XRP Ledger, comparing it to how Bitcoin functions across various platforms. He pointed to the XRP Ledger's Ethereum Virtual Machine (EVM) sidechain, where XRP is used as a currency despite not being directly tied to XRPL transactions. This indirect usage, according to Schwartz, still contributes meaningfully to the token's utility and value.

Schwartz's insights suggest that XRP's value generation is not limited to its native platform. The regulatory landscape for XRP remains uncertain despite recent developments. The approval of the ProShares Ultra XRP ETF, for instance, does not fully settle XRP's legal status. Investors should treat such approvals with caution, as the SEC's unresolved lawsuit against Ripple Labs continues to cast a shadow over the cryptocurrency's future. The ongoing legal battle between Ripple and the SEC has significant implications for the broader cryptocurrency market. The outcome of this lawsuit could set a precedent for how other cryptocurrencies are regulated, potentially impacting their adoption and value. As the legal proceedings continue, investors and industry participants will be closely monitoring developments to gauge the potential impact on XRP and the broader market.