Ripple and the U.S. Securities and Exchange Commission (SEC) have formally settled their high-profile legal dispute, concluding multi-year litigation that centered on the regulatory status of XRP. The settlement imposes a $125 million penalty on Ripple and permanently prohibits the company from conducting certain institutional sales of the XRP token.
The resolution triggered an immediate surge in XRP’s market price as investors reacted to enhanced regulatory clarity surrounding the digital asset. The legal conflict originated in late 2020 when the SEC filed suit alleging XRP constituted an unregistered security offering.
Both parties have withdrawn pending appeals, finalizing the penalty terms and institutional sales restrictions. While the settlement removes significant legal uncertainty, market analysts note that XRP’s future price trajectory will remain dependent on broader cryptocurrency market conditions and evolving investor sentiment toward the asset.