XRP News Today: Ripple v SEC Settlement May Boost XRP Adoption by 50%

Crypto researcher SMQKE has highlighted the broader implications of the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC).

In a recent tweet, SMQKE suggested that the resolution of the Ripple v. SEC case would act as a "seal of approval" for central banks and other financial institutions to adopt XRP through the XRP Ledger. This outcome would significantly reduce regulatory uncertainty surrounding the asset, a major concern for institutional players considering XRP for cross-border settlement and liquidity operations.

SMQKE's analysis indicates that the settlement of the case would make XRP usage by central banks and large financial actors less speculative compared to other cryptocurrency-related events, such as corporate Bitcoin purchases. For instance, Tesla’s high-profile Bitcoin acquisition lacked the regulatory clarity that central banks and regulated financial entities require before adopting digital assets at scale.

As of July 2025, the Ripple v. SEC case remains active, but significant progress has been made toward a resolution. In March 2025, Ripple and the SEC reached an agreement to reduce Ripple’s civil penalty to $50 million, with the company no longer pursuing its appeal of the court’s earlier rulings. In return, the SEC agreed to withdraw its appeal and indicated that it would not pursue further litigation on the same issues. However, the proposed settlement is still subject to approval by the presiding judge, and key procedural steps remain.

Judge Analisa Torres declined in June to vacate the injunction against Ripple immediately, citing procedural and jurisdictional reasons. The SEC still needs to complete its internal voting process, which is expected to take several weeks, before filing a formal motion to dismiss its appeal and finalize the settlement. Both parties are expected to submit an update to the court by August 15, making it the likely timeframe for the formal closure of the case.

SMQKE’s remarks align with the views of many XRP advocates who believe that the resolution of the SEC lawsuit will remove a significant barrier to institutional adoption. Since the SEC filed its complaint in late 2020, accusing Ripple of selling unregistered securities, many U.S.-based exchanges delisted XRP, and financial institutions hesitated to incorporate it into their operations. A completed settlement, with no further legal challenge from the SEC, would confirm that XRP can be used without fear of additional regulatory enforcement, making it a viable option for central banks exploring distributed ledger technology for cross-border settlement.