XRP News Today: Ripple settles SEC lawsuit pays $125M XRP not a security in secondary markets

Ripple Labs Inc. reached a definitive settlement with the U.S. Securities and Exchange Commission (SEC) in July 2023, ending a prolonged legal battle that has been a pivotal point for the cryptocurrency industry [1]. The terms of the agreement included a $125 million penalty from Ripple, marking the conclusion of years of litigation over whether XRP, the company’s native token, qualifies as a security under U.S. law [1]. The resolution came after Judge Analisa Torres issued a ruling that XRP is not a security when traded on exchanges, providing much-needed legal clarity to market participants [1].

Stuart Alderoty, Ripple’s Chief Legal Officer, remarked on the development, stating, “The end…and now back to business,” signaling a return to operational focus for the company [1]. Ripple’s CEO, Brad Garlinghouse, confirmed that both parties agreed to drop their respective appeals, ensuring the ruling by Judge Torres would remain in place [1]. The outcome has significant implications, as it distinguishes between secondary-market trading and direct institutional sales—an area that may influence future regulatory approaches to digital assets [1].

The market responded positively to the news, with XRP experiencing a notable surge in value. Shortly after the settlement, the token briefly exceeded $3.36, a 10% increase that reflected heightened investor optimism [1]. This development has reinforced XRP’s position as the third-largest cryptocurrency by market capitalization, offering a boost to broader market sentiment in the sector [1].

Regulatory clarity is often cited as a critical factor for long-term adoption and institutional investment in digital assets. Ripple’s settlement may serve as a precedent for future cases involving similar legal questions, potentially shaping how regulators approach other tokens and platforms [1]. The case has also underscored the importance of distinguishing between different types of token transactions—particularly in secondary markets—when determining their legal status [1].

While there are no current forecasts from verified experts predicting a rapid rise in XRP’s price to $10, the regulatory resolution has instilled confidence among investors who see this as a step toward broader acceptance [1]. Ripple’s strengthened legal position may also encourage further discussions on regulatory frameworks for cryptocurrencies, both within the U.S. and globally [1].

The resolution of the lawsuit reflects a turning point for Ripple and the broader crypto industry. With the legal uncertainty now reduced, the company is expected to focus on expanding its business, including partnerships and the adoption of XRP in cross-border payments and financial services [1]. The outcome also demonstrates the judiciary’s willingness to engage with the nuances of digital assets, potentially guiding future interpretations of securities law in the context of blockchain technology [1].

Source: [1] Ripple Ends SEC Lawsuit, XRP Status — [https://theccpress.com/ripple-ends-sec-lawsuit-xrp-status/](https://theccpress.com/ripple-ends-sec-lawsuit-xrp-status/)