Ripple Reaches Settlement with SEC, XRP Price Soars
April 12, 2025 – In a significant turn of events for the cryptocurrency market, Ripple Labs has agreed to a $50 million settlement with the U.S. Securities and Exchange Commission (SEC), just as its digital asset XRP experiences a notable price rally. This settlement comes after a three-year legal battle that began when the SEC accused Ripple of selling XRP as an unregistered security in December 2020.
Legal Background
The SEC’s initial lawsuit against Ripple generated significant scrutiny and debate within the crypto community and the broader financial landscape. In a crucial ruling last year, a court granted Ripple a partial win by stating that sales of XRP to institutional investors were legal, while sales on public exchanges constituted violations of securities laws. With this settlement, Ripple aims to put an end to the protracted legal disputes and move forward with its business strategy.
Ripple’s CEO, Brad Garlinghouse, expressed relief over the settlement, noting that the company had previously set aside $125 million for potential penalties but would now be able to reclaim most of that amount, including any interest accrued. “We’re actually taking most of that back, including the interest that had been earned along the way,” Garlinghouse stated in an interview with Fox Business. He criticized the previous administration under former SEC Chair Gary Gensler, suggesting that the new leadership is aligning more closely with the law.
XRP’s Market Reaction
In the wake of the settlement, XRP has surged, becoming the top-performing major cryptocurrency in the past 90 days. As of the latest reports, XRP is trading at approximately $2.16, reflecting an increase of about 0.87% over the previous 24 hours. The price rally indicates strong investor confidence in Ripple’s future prospects, especially with the regulatory uncertainties lifting.
Garlinghouse acknowledged the beneficial impact of political donations made by Ripple to the previous administration. The company reportedly contributed millions to then-President Donald Trump’s campaign and donated $5 million in XRP tokens for his inauguration. According to Garlinghouse, this support, coupled with the new SEC regime, resulted in a favorable environment for Ripple and other cryptocurrency firms, leading to the dropping of multiple lawsuits against them.
Ripple’s Plans for Expansion
With regulatory clarity beginning to emerge, Ripple is positioning itself for growth. The company recently announced its largest acquisition to date, purchasing prime broker Hidden Road for $1.25 billion. Garlinghouse emphasized the strategic importance of this acquisition, stating it would enable larger financial institutions to access the crypto market more securely. “This allows even larger institutions like BlackRock, the biggest Wall Street financial institutions, to come into this market,” he explained.
This acquisition will increase Ripple’s workforce to approximately 1,100 employees. Garlinghouse remarked on the difficulties faced in hiring within the U.S. due to regulatory uncertainty, stating that he prefers to bring talent into the company from the domestic market.
Additionally, Ripple has expanded its product offerings by launching a stablecoin under a New York trust license, marking a significant milestone in its growth strategy.
Future Outlook
Looking ahead, Garlinghouse anticipates ongoing improvements in regulatory frameworks, particularly regarding stablecoin legislation and market structure bills. He expressed confidence that such legislation will gain momentum soon, potentially paving the way for further innovation and investment in the blockchain space.
Regarding broader market predictions, Garlinghouse has adjusted his forecast for Bitcoin to foresee a price of $200,000 by the end of the year, up from an earlier projection of $175,000. He attributed this optimism to the newfound regulatory environment in the U.S., stating, “People underestimate how the largest economy in the world, the U.S., went from headwinds, hostility to tailwinds.”
As the cryptocurrency industry navigates these changes, Ripple’s latest developments underscore a pivotal moment for both the company and the broader market, with investors cautiously optimistic about the future.
Source: CoinGecko
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