- SEC drops Ripple appeal, lifting regulatory hurdles to XRP market growth.
- XRP surges 12% as Ripple settles to reduce $50M fine and refund proposal.
- Ripple court victory can serve as a precedent for future crypto regulations.
The U.S. Securities and Exchange Commission (SEC) officially ended its appeal against Ripple, marking the closure of a four-year-old lawsuit, which was opened in 2020. Ripple will pay half the originally decreed fee amounting to a lesser $50 million, the remaining $75 million is reimbursed, while the SEC will request to have the prohibition imposed on the company lifted.
Legal Developments and Market Reactions
Ripple Chief Legal Officer Stuart Alderoty posted on X that the SEC has conditionally agreed to dismiss its appeal. Ripple will dismiss its cross-appeal. The resolution followed negotiations, in which Ripple bargained for better terms than Judge Analisa Torres’ August 2024 ruling, which initially demanded a $125 million fine.
Ripple CEO Brad Garlinghouse previously stated that the legal battle had held back the company’s growth, and now the company can move ahead without any further regulatory hurdles.
The SEC decision falls under a general trend of reducing enforcement action against crypto firms, such as Coinbase, Uniswap, and Robinhood. This follows after the departure of previous SEC Chairman Gary Gensler and the appointment of Mark Uyeda.
Market Impact and Institutional Sentiment
XRP appreciated 12% following the news, which translated investor confidence in Ripple’s strengthening legal standing. Coinglass statistics indicated $25.48 million worth of XRP futures liquidations in 24 hours, with $16.57 million short and $8.91 million worth of long liquidations.
Even though there had been a quick price rally, XRP is still trading below important resistance levels of $2.72, and analysts noted that breaking free could propel it to a seven-year high at $3.40.
Institutional demand for XRP can increase, particularly with XRP exchange-traded fund (ETF) filing rumors. Firms like Canary Capital, CoinShares, and Franklin Templeton are closely monitoring regulatory clarity, awaiting ETF approvals as policies change at the SEC.
Regulatory and Policy Implications
The SEC reversal on Ripple follows a broader movement in regulation from the Trump administration, which has adopted a friendlier stance with respect to crypto. The willingness of the agency to settle settled controversies suggests change in the way enforcement is conducted, favoring open legislative directions over court battles.
Ripple’s settlement will set a precedent for future digital asset cases, influencing current debates on token classification and securities laws. As the SEC relaxes its stance, other crypto companies will have more favorable regulatory climates, changing institutional adoption and market structures.
