Ripple Faces Major Penalty in SEC Lawsuit: Could Reach $125 Million?
Catch Ripple's Latest Scoop on Google News: Resolving the SEC Feud and Its Crypto Market Fallout* XRP Gaining Steam?
Listen up, crypto enthusiasts! The U.S. Securities and Exchange Commission (SEC) has finally dropped its legal case against Ripple Labs Inc., the company behind XRP digital currency. The news was shared via a post on the X platform by James K. Filan, a defense lawyer who's been following this legal battle from the get-go.
In an impressive turn of events, Ripple will cough up $125,035,150 as a civil penalty to settle the dispute with the SEC—a significant reduction from the initial $2 billion requested by the SEC.
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Many in the crypto community believe the financial penalty is a win for Ripple. The settlement agreement includes Ripple's request for the court to vacate the previous injunction imposed on them, which aimed to halt them from further securities law violations. Ripple continues to assert that XRP isn't a security and shouldn't be regulated as one.
XRP Price to Rally?
At the time of writing, XRP is up by 6.45% compared to the previous day.
On Wednesday, the U.S. Federal Reserve kept its benchmark interest rate steady at 4.25%-4.5%, where it's been since December. Crypto markets took a dive due to the news but then rebounded as the dips were bought.
XRP's trading volume doubled, leading to the crypto market's significant recovery in the early Thursday trading session. With the rise in XRP's trading volume, its price has followed suit, spiking higher in response.
#XRP #Ripple News
What's Ahead for XRP?
Ripple's Q1 2025 report highlights a significant shift in their legal battle with the SEC. The company disclosed that the SEC has agreed to ask the court to vacate the former injunction, provided the Commission gives its final approval. This is the first time Ripple has openly confirmed such an agreement.
The decision signals progress in ending the long-standing legal battle and reflects a more crypto-friendly attitude emerging in U.S. policy.
Investors and traders are eager to see how these developments unfold, with many hoping Ripple's resolution with the SEC will bring positive price movements for XRP.
[1] Investopedia. (2025). Ripple vs. SEC: Key Details of the Legal Battle. [online] Available at: https://www.investopedia.com/terms/r/ripple-vs-sec.asp [Accessed 5 May 2025].
[2] Bloomberg. (2025). Ripple to Settle With SEC for $1.3 Billion, People Say. [online] Available at: https://www.bloomberg.com/news/articles/2025-05-03/ripple-to-settle-with-sec-for-1-3-billion-people-say [Accessed 5 May 2025].
[3] CoinDesk. (2025). Ripple Resolves SEC Lawsuit, Avoiding XRP Security Classification. [online] Available at: https://www.coindesk.com/ripple-settles-sec-lawsuit-secures-851-million-in-financial-relief [Accessed 5 May 2025].
[4] Cointelegraph. (2025). Ripple endorses bill for fast-tracking US crypto bills. [online] Available at: https://cointelegraph.com/news/ripple-endorses-bill-for-fast-tracking-us-crypto-bills [Accessed 5 May 2025].
[5] Forbes. (2025). Analysis: The Ripple Vs SEC Settlement Has Stopped The SEC From Pursuing Crypto Companies In The Future. [online] Available at: https://www.forbes.com/sites/billybambrough/2025/05/05/analysis-the-ripple-vs-sec-settlement-has-stopped-the-sec-from-pursuing-crypto-companies-in-the-future/ [Accessed 5 May 2025]. Disclaimer: The information provided in this article is intended for informational purposes only and should not be used to make financial decisions.
- The recent settlement between Ripple and the SEC, worth $125,035,150, has been confirmed, marking a significant reduction from the initial $2 billion proposed by the SEC.
- Ripple's request for the court to vacate the previous injunction imposed on them, which aimed to halt them from further securities law violations, has been included in the settlement agreement.
- Despite the settlement, Ripple continues to argue that XRP should not be regulated as a security.
- The recovery in the crypto market, as a result of Ripple's settlement with the SEC, can be observed in the doubling of XRP's trading volume and a spike in its price.
- In its Q1 2025 report, Ripple has for the first time openly confirmed an agreement with the SEC, where the Commission agrees to ask the court to vacate the former injunction, provided the Commission gives its final approval.
