Ripple Recovers $75M After Winning SEC Lawsuit

The motion, submitted to Judge Analisa Torres in the U.S. District Court for the Southern District of New York, requests the dissolution of the existing injunction against Ripple.

This move marks the culmination of a legal saga that began in December 2020 and has since become one of the most closely followed cases in the crypto space. If approved, $75 million of the initially proposed $125 million settlement will be returned to Ripple, solidifying a major victory for the company and signaling a shift in U.S. crypto regulation.

Ripple Gains Momentum

The SEC’s lawsuit, filed under then-Chair Gary Gensler, accused Ripple of selling unregistered securities via its native token, XRP. Despite years of legal hurdles, Ripple appears to have emerged with its reputation and financial standing intact. The company’s resilience and long-term strategy have positioned it for accelerated growth in the wake of this settlement.

Notably, this agreement comes at a time when regulatory winds appear to be shifting. The Trump administration has signaled a more favorable stance toward digital assets, and Ripple seems to be capitalizing on the opportunity.

Source: X (@FilanLaw)

Just last month, Ripple acquired prime brokerage firm Hidden Road for $1.2 billion, expanding its footprint in the institutional finance space. The acquisition signals Ripple’s intention to integrate more deeply into the traditional financial system and increase its service offerings to large-scale clients.

Reports also suggest that Ripple was in talks with Circle, the issuer of the USDC stablecoin, regarding a potential $5 billion acquisition. While the offer was ultimately declined, the discussion illustrates Ripple’s aggressive expansion ambitions.

Now, with the lawsuit nearing resolution and a majority of the settlement funds being returned, Ripple is expected to ramp up its global acquisition strategy, especially in jurisdictions with clearer regulatory guidelines.

From Legal Uncertainty To Commodity Status

The conclusion of the case may have larger implications for the crypto industry, particularly around how XRP is classified. The legal battle has reinforced the position that XRP is a commodity, not a security, opening the door for broader adoption and potential exchange-traded fund (ETF) approval.

According to Bloomberg’s senior ETF analysts, five spot XRP ETF filings, from Grayscale, 21Shares, WisdomTree, Bitwise, Canary, and Franklin Templeton, now have an 85% chance of approval following the leadership change at the SEC. This is a notable increase from their prior estimate of 65%.

Additionally, betting markets like Polymarket reflect increased investor confidence, with odds of an XRP ETF approval by December 31 now at 77%.

Political Influence & Strategic Lobbying

Ripple’s proactive engagement with policymakers appears to be paying dividends. While rumors circulated that President Trump may have been misled into endorsing XRP as part of a proposed national crypto reserve, there is no formal confirmation of such an endorsement.

Nonetheless, Ripple’s lobbying efforts in Washington D.C. are well-documented, and the company has increasingly positioned itself as a key player in shaping the future of crypto regulation in the U.S.

Source: X (@FilanLaw)

As the court considers the motion to finalize the Ripple-SEC settlement, the crypto market appears to be breathing a collective sigh of relief. The resolution of this case not only clears Ripple’s path for expansion but also sets a regulatory precedent that could impact various other crypto assets.

Investors, traders, and regulators alike are now watching closely. Should the court approve the motion, XRP may be poised for its most significant rally since the bull run all the way back in 2017. If this happens, it could very well usher in a new era for both the company and the broader cryptocurrency market while simultaneously convincing crypto companies that the United States is not stifling innovation anymore.