Ripple’s $50M SEC Settlement: Is XRP’s Legal Saga Finally Over?

SEC settles Ripple lawsuit for $50M, but internal opposition sparks doubts. Will XRP face new legal hurdles or soar to $10? Dive in!

May 9, 2025 - 12:40
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Ripple’s $50M SEC Settlement: Is XRP’s Legal Saga Finally Over?
The U.S. Securities and Exchange Commission (SEC) has moved to settle its four-year legal battle with Ripple Labs, proposing a $50 million fine to resolve allegations of unregistered XRP securities sales, down from an initial $125 million penalty. Announced on May 8, 2025, this settlement marks a pivotal moment for XRP, currently trading at $2.23. However, internal SEC resistance and political tensions, including claims of bias linked to Trump’s $2 billion UAE crypto deal, raise questions about whether the case could resurface.
What’s Happening?
The SEC sued Ripple in 2020, alleging $1.3 billion in illegal XRP sales. A 2023 ruling by Judge Analisa Torres found institutional sales violated securities laws, but public exchange sales did not, leading to appeals. In March 2025, both parties dropped appeals, agreeing to a $50 million fine, with $75 million refunded from escrow. Recent filings show SEC internal pushback, with some staff citing insufficient investor protections and concerns over Trump’s influence, given Ripple’s $5 million XRP donation to his inauguration fund.
Why It Matters
The settlement lifts a major cloud over XRP, boosting its price 300% since Trump’s election and fueling ETF hopes with an 85% approval chance in 2025. Clearer regulations could drive XRP toward $3.55 or even $10, especially with Ripple’s $1.25 billion acquisition of Hidden Road. Yet, internal SEC dissent and political scrutiny, including Stuart Alderoty’s $300,000 XRP donation to Trump’s campaign, could spark new investigations. A bearish pattern suggests a potential drop to $1.07 if support fails.
What’s Next?
The settlement awaits Judge Torres’ approval, expected by June 2025. If finalized, XRP could rally, but unresolved SEC objections or tariff-related market volatility may delay gains. Ripple’s push for private XRP sales and ETF filings will be key to watch.
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NOTICE: The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.