Ripple Labs has officially ended its long-standing legal dispute with the U.S. Securities and Exchange Commission (SEC), recovering $75 million from a proposed $125 million settlement. This development follows a joint motion submitted by Ripple and the SEC to Judge Analisa Torres in the U.S. District Court for the Southern District of New York. The case, which began in December 2020, has cast a shadow over Ripple’s operations and the XRP token for nearly five years. With this resolution, the cloud of regulatory uncertainty finally lifts, potentially unlocking Ripple’s next phase of growth.
Settlement Details and Ripple’s Legal Victory
Under the motion, $50 million will be allocated as a final penalty, while the remaining $75 million will be returned to Ripple. This resolution dissolves the standing injunction and signals the official end to one of the crypto industry’s most high-profile regulatory battles.
This case set the stage for broader debates over the classification of digital assets. Significantly, the court’s stance reinforced the view that XRP is a commodity, not a security, bolstering optimism around future financial products linked to XRP.
Ripple's Growth Accelerates Post-Lawsuit
Despite years of legal pressure, Ripple remained financially resilient, most recently making waves with a $1.2 billion acquisition of Hidden Road, a prime brokerage firm. The company was also in advanced talks to acquire Circle, the issuer of USDC, in a potential $5 billion deal, although that proposal was declined.
Now free of regulatory entanglement, Ripple is expected to aggressively pursue acquisitions and partnerships both in the U.S. and abroad.
XRP ETF Approval Odds Surge
Following the settlement, analysts from Bloomberg now estimate an 85% probability that an XRP Spot ETF could receive approval in the near term. Applications from leading asset managers such as Grayscale, 21Shares, WisdomTree, Bitwise, Canary, and Franklin Templeton are all under consideration.
This is a marked increase from earlier this year, when approval odds stood at just 65%. On Polymarket, traders are placing the likelihood of approval by December 31 at 77%, signaling strong market conviction.
Political Ties and Market Sentiment Boost XRP
Ripple’s proactive lobbying efforts under the Trump administration appear to be paying off. Although rumors surfaced regarding President Trump allegedly endorsing XRP for a national crypto reserve, no official confirmation has followed. Nevertheless, the company’s increasing influence in regulatory circles is undeniable.
The announcement of the settlement sparked a 10% price rally for XRP, lifting the token to $2.28 before a slight pullback. Traders are now eyeing $2.50 as near-term resistance, with some price targets reaching as high as $7 or even $20, contingent on the final court approval and macro stability.
Outlook: What Comes Next for Ripple and XRP?
The market is betting on a favorable ruling to finalize the settlement. A confirmed court decision would not only close a critical chapter in Ripple’s history but could act as a launchpad for a major XRP rally and strengthen the case for wider crypto adoption in traditional finance.
With investor confidence rebuilding and regulatory alignment improving, Ripple appears stronger than ever, both legally and strategically.
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