XRP News Today: Ripple SEC Disqualification Lifted, Regains Private Fundraising Access

Ripple has regained access to a critical private fundraising mechanism after the U.S. Securities and Exchange Commission (SEC) lifted its “bad actor” disqualification on July 31, 2025 [1]. This decision allows the company to utilize Rule 506 of Regulation D, a key tool for raising unlimited capital from accredited investors without the need for full SEC registration [2]. The regulatory change removes a five-year restriction imposed following a 2020 lawsuit in which the SEC alleged Ripple violated securities laws by conducting unregistered sales of XRP [6]. As part of the settlement, Ripple agreed to pay a $125 million civil penalty, far less than the initial $2 billion sought [9].

The removal of the “bad actor” label marks a significant milestone in Ripple’s ongoing legal battle with the SEC, which began in December 2020 [7]. The firm had been unable to access private capital efficiently during the litigation period, which limited its ability to fund strategic initiatives and compete in the digital asset space [2]. With the restriction now lifted, Ripple can pursue institutional investments with greater ease, potentially accelerating its expansion into fintech and blockchain infrastructure [6].

The settlement also clarifies the regulatory status of XRP, though it does not fully reclassify the token outside the securities framework in institutional markets [6]. This distinction leaves room for future regulatory scrutiny, but it provides Ripple with enough clarity to move forward with its business strategy. The company has announced plans to launch Protocol 23, an upgrade expected to enhance the functionality of its blockchain network [2]. It also aims to expand its cross-border payment solutions globally, reinforcing its position in the digital payments sector.

The market has responded positively to the news, with XRP’s price rising by 5–11% in the days following the announcement [8]. However, the token has also seen short-term volatility, as large holders sold approximately $1.9 billion worth of XRP in the immediate aftermath of the settlement [8]. Analysts suggest that this activity reflects lingering uncertainty about XRP’s future, despite the favorable regulatory outcome [8].

The broader implications of the case extend beyond Ripple, setting a precedent for how regulators may approach blockchain firms in the future [6]. While the settlement does not fully resolve all regulatory questions surrounding XRP, it demonstrates the possibility of reaching agreements that allow companies to operate within the framework of existing securities laws. Ripple’s legal team confirmed that both parties have dismissed appeals in the Second Circuit, effectively closing the case [6].

With fundraising restrictions lifted, Ripple is now in a stronger position to develop its global payment solutions and strengthen its role in the fintech and digital asset ecosystems [6]. Though the resolution is not the full victory Ripple had initially sought, it represents a pivotal step toward long-term stability and growth [9].

Source:

[1] Ripple Secures Major Legal Win as SEC Lifts Bad Actor

https://www.ainvest.com/news/xrp-news-today-ripple-secures-major-legal-win-sec-lifts-bad-actor-disqualification-2508/

[2] Ripple Scores Major Win as SEC Lifts “Bad Actor” Ban

https://coinpedia.org/news/ripple-scores-major-win-as-sec-lifts-bad-actor-ban/

[6] Ripple vs SEC Lawsuit Over? Here's What Happens After

https://cryptorank.io/news/feed/5a301-ripple-vs-sec-lawsuit-over-heres-what-happens-after-appeals-dropped

[7] Ripple Vs SEC: The Historic Legal Battle Ends After 4 Years

https://www.mitrade.com/insights/news/live-news/article-3-1022155-20250808

[8] XRP price today: whales dump $1.9B after Ripple's legal win

https://m.economictimes.com/news/international/us/xrp-price-today-whales-dump-1-9b-after-ripples-legal-win-short-term-test-or-medium-term-breakout-ahead/articleshow/123176340.cms

[9] High-Profile XRP Lawsuit Reaches End After SEC And

https://zycrypto.com/high-profile-xrp-lawsuit-reaches-end-after-sec-and-ripple-drop-their-appeals-in-second-circuit/