The U.S. Securities and Exchange Commission (SEC) has officially dropped its appeal against Ripple (XRP), bringing an end to a years-long legal battle.
According to Ripple’s Chief Legal Officer Stuart Alderoty, the two sides have agreed to reduce the financial penalty for Ripple’s institutional sales of XRP from $125 million to $50 million. Ripple also expects the ban on XRP sales to institutional investors to be lifted.
Penalty Reduced, Ban Could Be Lifted
According to the official statement, the SEC agreed to retain only $50 million of the previously imposed $125 million penalty. The remaining amount will be returned to Ripple. Furthermore, the SEC has stated its intent to request the court to lift the existing ban on Ripple’s institutional XRP sales — a restriction the agency itself had previously advocated.
This refers to a ruling by Judge Analisa Torres, which limited Ripple’s ability to sell XRP to institutional investors, based on the finding that such sales may constitute unregistered securities offerings.
Settlement Awaits Final Approval
The agreement still requires formal approval by the SEC's internal commission. According to legal expert Fred Rispoli, the entire process is expected to be completed within 60 days. Once the SEC files a motion to lift the sales ban, Ripple will not object, and the court is likely to issue a final order within a month.
Rispoli added that the case may only resurface if no legislative changes are enacted by 2028 and political conditions shift unfavorably.
Regulatory Pressure on Crypto Eases
The SEC’s softened stance on Ripple aligns with its broader policy shift regarding digital assets. Congress is currently reviewing two major bills: one focused on stablecoins, and the other on the regulatory framework for the crypto market. According to Blockchain Association CEO Kristin Smith, both bills are expected to pass by August 2025.
In addition, the SEC recently held its first public hearing on the legal status of digital assets and is planning a series of open meetings through June. Topics will include trading rules, custody services, tokenization, and DeFi regulation.
XRP ETF Now More Likely
According to Nate Geraci, President of ETF Store, the conclusion of the Ripple case makes the approval of an XRP ETF increasingly likely. He believes major institutions like BlackRock and Fidelity will get involved once a product is approved.
Previously, Franklin Templeton submitted an application for an XRP ETF, despite delays by the SEC in processing other crypto-related fund proposals.
Market Reaction
Reports indicate that large XRP holders, those holding between 10 million and 100 million tokens, began accumulating XRP heavily in late February. Price data shows that their actions have had a noticeable impact on market performance.
However, following the news of the SEC dropping its appeal, XRP had already surged by 12%, and this latest development did not result in major price movement. Market participants are now waiting for the next catalyst, potentially the launch of an XRP ETF.
At the time of writing, XRP is trading at $2.46.
