Here are the key points from the article regarding XRP and Ripple:
1. Background on the SEC Case
The U.S. SEC sued Ripple in 2020, claiming that XRP was a security and Ripple's issuance of it violated financial regulations.
The lawsuit created legal uncertainty around XRP, limiting its adoption and price growth.
2. Settlement and Reduced Penalty
In May 2025, the SEC settled with Ripple, reducing the financial penalty from $125 million to $50 million.
This follows a shift in regulatory tone under the Trump administration, which is more favorable toward crypto.
3. XRP's Unique Structure
Unlike Bitcoin or Ethereum, XRP is not mined. It was created and issued by Ripple, making it more centralized.
Ripple still controls over 40% of XRP’s supply, which contributed to the SEC’s concerns.
4. Use Case of XRP
XRP is used to facilitate fast, low-cost international payments through the Ripple Payments network.
However, banks don’t need to use XRP to use Ripple’s technology, limiting its organic demand.
5. Market Reaction and Outlook
XRP rose 370% since Trump's 2024 election win, but it's still below its all-time high from 2018.
The settlement is positive, but XRP’s future growth depends more on speculative investor sentiment than practical usage.
Investors are advised to be cautious, as sustainable upside isn't guaranteed despite legal clarity.
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