SEC vs. Ripple The Final Verdict Is In
A landmark chapter in cryptocurrency legal history came to a close as the Second Circuit Court of Appeals in the United States officially approved a settlement between the Securities and Exchange Commission (SEC) and Ripple Labs. This final verdict effectively ends a legal battle that began nearly five years ago, in December 2020, when the SEC filed a lawsuit against Ripple, accusing the company of selling unregistered securities in the form of XRP tokens.
The resolution was facilitated after both parties submitted a joint appeal, signaling their mutual desire to withdraw any further challenges to previous court decisions. This outcome, which followed a change in the SEC’s leadership after Donald Trump’s re-election, brings a critical dose of regulatory clarity to the XRP ecosystem, removing a major overhang that has weighed on its price and development for years. The finality of this settlement provides a solid foundation for both the Ripple network and the broader crypto market.
A Legal Victory for On-Exchange XRP Trading
The cornerstone of the court’s decision, now made final and unappealable, is a ruling delivered by Judge Analisa Torres in July 2023. This ruling made a crucial distinction that has become a legal precedent for the industry. Judge Torres found that the trading of XRP on public exchanges does not constitute an unregistered securities sale, a significant victory for the crypto community.
However, the ruling also clarified that direct offerings of the crypto asset to institutional investors did breach securities law. This two-pronged verdict now stands as the final legal word on the matter, providing a clear framework for how XRP can be treated by regulators and market participants alike. The resolution confirms that XRP is not a security when traded on exchanges, a distinction that could pave the way for a new wave of institutional and retail adoption.
The $125 Million Fine and Rejected Appeals
The finalization of the case also brings clarity to the financial penalties imposed on Ripple. Following the court’s decision, Ripple was fined $125 million. While a substantial sum, it represents a significant reduction from the $2 billion the regulator had initially demanded. The road to this final settlement was not without its own complexities. In October 2024, the SEC filed an appeal, and Ripple responded with a counter-appeal.
Moreover, in June of this year, both parties jointly requested the court to lift the fine and the ban on offering XRP to large players, but Judge Torres rejected this request. The finality of this fine and the institutional sales ban means that the case is now completely resolved, removing any lingering legal uncertainty for Ripple and its token.
Are Spot XRP ETFs Closer Than Ever?
In a parallel development that immediately followed the final settlement, major asset managers wasted no time in updating their applications with the SEC. Prominent firms, including Grayscale, Bitwise, Canary, CoinShares, Franklin, 21Shares, and WisdomTree, all amended their filings to launch spot ETFs based on XRP. This collective action is seen by many as a powerful signal that these financial giants are confident in the newfound regulatory clarity surrounding XRP.
Bloomberg exchange analyst James Seyffart noted that this was “a good sign, but mostly expected,” implying that the actions were likely related to the SEC’s feedback on their proposals. NovaDius Wealth President Nate Geraci also supported this perspective, calling the coordinated change in requests a “noteworthy” development that could expedite the approval process.
Polymarket and Bloomberg The Odds on an ETF Approval
The market’s enthusiasm for a potential spot XRP ETF has been reflected in key prediction platforms and analyst forecasts. The odds of regulatory approval for an exchange-traded XRP fund this year jumped to 84% on the Polymarket platform. This is a dramatic reversal from a recent low of approximately 65% in August and marks a significant return to the optimism seen in early June, when the figure exceeded 98%.
Despite these fluctuations, Bloomberg’s team of analysts has maintained a confident outlook, with a 95% probability of XRP ETF registration, and they believe the SEC is likely to make a decision in October. The alignment of a final court ruling with these high-probability forecasts has created a very bullish environment for the asset.
XRP’s Price Surge and Broader Market Catalysts
The price of XRP has reacted swiftly and positively to this confluence of good news. The token has risen nearly 7% in the past day, trading above the $3 level. This surge is part of a broader market rally that was triggered by a speech from Federal Reserve Chairman Jerome Powell. At a conference in Jackson Hole, the central bank head hinted at a readiness to lower the key interest rate in September, a move that is generally seen as bullish for risk assets like cryptocurrencies.
The combination of its own favorable legal and institutional developments, along with a positive macroeconomic tailwind, has created a powerful moment for XRP, with its relative strength outperforming many other assets in the market.
What’s Next for XRP? The Road to Mainstream Adoption
With its legal saga officially behind it, XRP appears to be on a clear path toward broader mainstream adoption. The finalization of the SEC case removes the biggest barrier to institutional investment and a potential spot ETF, which could channel billions of dollars into the ecosystem. The bullish sentiment is not limited to market analysts; it is also shared by experts such as Bitget’s chief analyst Ryan Lee and IT consultant Roman Nekrasov, who have given positive forecasts for XRP in the coming months.
The token’s core utility in cross-border payments, combined with its newly clarified legal status and growing institutional interest, positions it for a potential new era of growth and utility. The coming months will be crucial for XRP as it attempts to solidify its position as a major player in the global financial landscape.
Recommended Article: XRP Cloud Mining: A New Era of Passive Income with Quid Miner
