XRP News Today: Ripple Settles With SEC For $50M, XRP Surges

Ripple and the U.S. Securities and Exchange Commission have reached a settlement agreement that, if approved by the New York Court, will end their four-year legal saga. The settlement involves Ripple and two of its executives, CEO Brad Garlinghouse and Executive Chairman Chris Larsen, paying a $50 million penalty. The remaining $75 million of the $125 million in civil penalties held in escrow is to be returned to Ripple. District Court Judge Analisa Torres must approve the agreed-upon settlement.

The SEC, under previous Chair Gary Gensler, had initially demanded that Ripple pay a massive $2 billion fine. However, last year, Judge Torres ordered Ripple to pay a $125 million fine after finding that the company broke securities laws in selling its native XRP token to institutional customers, but did not break federal securities laws in putting XRP on digital asset exchanges for retail investors.

Since President Donald Trump took office, the SEC, under its new leadership, has been walking back its hardline stance towards the crypto industry and has thrown out multiple enforcement actions and probes. President Trump has vowed to make the U.S. the “crypto capital of the world.”

SEC Commissioner Caroline Crenshaw has publicly criticized the agency’s pending deal with Ripple, warning in a statement that it ruins the regulator’s ability to keep crypto companies in line and undermines the court’s ruling. Crenshaw’s term as commissioner ended in 2024, but the SEC allows an extension of 18 months after the expiration of a term. Crenshaw also warned the move hurts the SEC’s credibility, claiming its lawyers “are being asked to take legal positions today contrary to the ones taken just months ago.”

The commissioner further argued that if Judge Torres approves the settlement, it would erase “the investor protections we already won” and leave a “regulatory vacuum,” until the crypto task force formulates a clear regulatory framework. “The settlement is not in the best interests of the investors and markets that our agency is tasked with serving and protecting. It creates more questions than answers,” she posited.

This settlement has ignited a surge in the price of XRP, with some analysts forecasting that it could reach $10. The resolution of the legal battle between Ripple and the SEC has provided clarity and stability to the market, which has been eagerly awaiting a definitive outcome. The settlement marks a significant milestone in the ongoing debate over the regulatory status of cryptocurrencies and their classification as securities.

The settlement agreement, if approved, will not only end the legal dispute but also set a precedent for future regulatory actions involving cryptocurrencies. The outcome of this case will likely influence how other crypto companies navigate the complex regulatory landscape and interact with regulatory bodies. The resolution of this long-standing legal battle is expected to have far-reaching implications for the broader crypto industry, potentially paving the way for increased adoption and innovation in the sector.