XRP News Today: Ripple SEC Legal Battle Nears End With $50 Million Settlement Proposal

Ripple and the SEC have jointly requested a pause in their appeals, indicating a potential resolution in their multi-year legal battle. This development comes after nearly five years of legal disputes, with the case now potentially nearing its conclusion. The market has already begun to anticipate a favorable settlement, with institutional demand for XRP on the rise.

On June 16, both Ripple and the SEC asked the U.S. Second Circuit to pause their appeals. This appeal originated from the 2023 ruling by Judge Torres, who held that XRP is not a security when sold in programmatic (retail) transactions but is a security when sold to institutional investors. This ruling provided Ripple with partial grounds for appeal. The recent pause in appeals suggests that serious settlement talks are underway. Ripple has proposed a $50 million penalty, significantly lower than the SEC's original $2 billion demand, and is seeking to lift the remaining restrictions. If the judge approves this proposal, it could mark the end of one of the most protracted and contentious legal battles in the crypto industry.

The case now enters its final chapter, with both Ripple and the SEC aligned on the proposed resolution. The next few days could be crucial, particularly for XRP holders awaiting the final ruling. The legal dispute has primarily centered around institutional XRP sales, with the SEC arguing that these sales constituted unregistered securities. In contrast, retail sales were not the focus of the dispute. The SEC's stance was that XRP sales to institutional investors were akin to unregistered securities, similar to how Apple shares are tied to the company's profits and performance. However, XRP's price movements are influenced by market sentiment, speculation, and short-term demand, not Ripple's earnings.

This ruling is significant because it could open the door for Ripple to sell XRP to institutions without SEC interference, potentially attracting substantial capital into the XRP Ledger and XRP itself. Despite the tight range in which XRP has been trading, smart money and institutional allocators have been quietly accumulating XRP, possibly in anticipation of this clarity. If the court approves the proposed $50 million settlement, the third quarter of the year could mark a pivotal shift for Ripple. This resolution could position Ripple as a strategic asset with yield potential and strong network utility, rather than just a volatile trade.