XRP News Today: Ripple Proposes $50 Million Settlement With SEC, Seeks Injunction Removal

Ripple has reached a critical juncture in its legal battle with the U.S. Securities and Exchange Commission (SEC). Speculation had suggested that Ripple might settle its financial obligations to the SEC using XRP, particularly given the recent decline in the cryptocurrency’s price. However, Marc Fagel, a former SEC official, clarified that Ripple’s compensation would be fulfilled through a pre-allocated cash reserve, not XRP. This clarification aimed to dispel rumors within the XRP community, emphasizing that funds have been set aside in cash within an escrow account to cover potential penalties.

A prominent XRP advocate supported this stance, noting that the XRP currently held in escrow operates on an all-or-nothing principle. This means any movement of the reserve would entail releasing it in its entirety, rather than partially. Additionally, crypto analyst John Squire had earlier speculated that the U.S. government might seize Ripple’s escrowed XRP for national reserves, a theory quickly dismissed by lawyer Bill Morgan as being far-fetched.

Despite a temporary dip in XRP’s price by over 2%, it later gained traction, benefiting from a broader cryptocurrency market surge. President Donald Trump’s announcement of a ceasefire between Iran and Israel contributed to the market revival. Bitcoin experienced a nearly 3% rise, reaching $106,000, while XRP saw a 6% increase in just one day.

Bill Morgan clarified concerns about the Ripple-SEC lawsuit stretching to late 2026. He mentioned that unless Judge Analisa Torres rejects the current consensus, such a prolongation seems unlikely. The expected resolution involves accepting the summary judgment, paying the fines, and obtaining a permanent injunction. The legal process presently awaits a crucial SEC filing, expected in mid-August. Judge Torres’s decision is also highly anticipated by the XRP community. Many experts believe the judgment could sway in either direction, dismissing the idea of the trial dragging on for years. Developments over the coming months should offer greater clarity.

Ripple has made significant strides in its legal battle with the SEC, as both parties have submitted a joint motion seeking an indicative ruling on vacating the injunction prohibiting XRP sales to institutional investors. This development comes as part of a broader settlement proposal that aims to reduce Ripple's civil penalty from $125 million to $50 million. The proposed settlement does not involve any restrictions on XRP, allowing the cryptocurrency to continue its operations without interference.

The joint motion, filed on June 12, marks a pivotal moment in the ongoing lawsuit, which has been a subject of intense speculation and debate within the cryptocurrency community. Legal expert Bill Morgan has refuted claims that the lawsuit could stretch into late 2026, asserting that a delay is "unlikely." Morgan believes that Judge Analisa Torres will likely uphold the current summary judgment and penalties, bringing the case closer to resolution. He also noted that if the judge approves the motion for an indicative ruling, the case could be resolved within weeks.

The proposed settlement includes a financial penalty of $50 million, which would be shared between the SEC and Ripple's stakeholders. This resolution aims to provide a clear path forward for Ripple, allowing the company to focus on its core operations and continue innovating in the cryptocurrency space. The removal of the injunction against XRP sales is a significant victory for Ripple, as it allows the company to engage with institutional investors without legal constraints.

Despite the optimism surrounding the potential resolution, some experts remain cautious. Legal analyst Bale predicted that the case could stretch until 2026 or even 2027, especially if the court rejects the latest filing. However, Morgan's assessment has been more optimistic, and he expects the judge to approve the motion, bringing the years-long lawsuit closer to its end. The XRP community is closely watching these developments, hoping for a final resolution that will allow the cryptocurrency to thrive in the market.