Ripple to Reclaim $75 Million from SEC in Landmark XRP Case

Ripple’s Chief Legal Officer declared today that its XRP litigation with the SEC is nearing the concluding legal stage. The SEC will retain $50 million from the previous $125 million penalty and refund the remainder to Ripple.

Most significantly, Ripple is likely to be allowed to provide XRP tokens to institutional investors, which could influence market liquidity and the likelihood of ETF approval.

A Final Chapter to Ripple Vs SEC

The Ripple vs SEC litigation was one of the most significant crypto enforcement endeavors of Gary Gensler’s tenure as Chair, and the final inquiries are being resolved.

Last week, the Commission officially withdrew its lawsuit, signaling the conclusion of an era. Now, Ripple’s Chief Legal Officer is offering “what should be [his] last update ever” regarding the case.

“Last week, the SEC consented to withdraw its appeal unconditionally. Ripple has now agreed to withdraw its cross-appeal. The SEC will retain $50 million of the $125 million penalty (already in an interest-bearing escrow in cash), while the rest will be returned to Ripple. The agency will also request the Court to revoke the standard injunction that was imposed earlier at the SEC’s behest,” he stated.

Specifically, this cross-appeal consists of two vital elements. Firstly, it pertains to the $125 million penalty. The initial expectation from the community was that the Commission would relinquish the entire penalty. However, it appears that both parties have reached a consensus on this issue.

Another vital ruling in the 2024 decision was that Ripple was prohibited from selling XRP to institutional investors. The company had reportedly been in discussions with the SEC to eliminate this mandate for several weeks.

As per reports, this ruling is also being overturned as a part of the agreement. In the long run, the lifted restrictions could have a much more significant influence. Now that the SEC will permit Ripple to sell XRP to institutional investors, it could generate considerable liquidity, partnership prospects, and more.

In particular, this ruling may also affect XRP’s classification as a security or commodity. The SEC was already contemplating Ripple’s assertions to classify XRP as a commodity, and this action may lend further support to that claim. This would also likely enhance XRP ETF approval prospects.

Meanwhile, XRP was largely anticipated. The altcoin remains nearly 10% up over the past week, but is still struggling to exceed $2.50.

Over the past week, the XRP community has voiced some concerns about the extremely low DEX trading volume on the network. Nevertheless, Ripple’s recent advancement with the SEC may create numerous opportunities to encourage bullish sentiment over the long term.