Ripple Nears End of SEC Legal Battle, ETF Speculation Fuels XRP Rally

San Francisco, July 2, 2025 – Ripple Labs, the company behind the XRP cryptocurrency, is approaching the conclusion of its high-profile legal dispute with the U.S. Securities and Exchange Commission (SEC), a development that is invigorating both the crypto markets and institutional interest in XRP.

After nearly five years of litigation, Ripple and the SEC have agreed to drop their respective appeals, following a settlement that includes a $50 million civil penalty. This penalty, finalized in April and approved by the SEC in May, is part of a broader financial arrangement that required Ripple to place $125 million in escrow after a 2024 court ruling found the company had engaged in unregistered security sales to institutional investors. The court is expected to approve the settlement, which would see $50 million paid to the SEC and the remaining $75 million returned to Ripple.

The agreement also requests the lifting of an injunction that currently restricts Ripple from selling XRP to institutional investors. If the court grants this request, Ripple would regain the ability to conduct institutional sales under clarified legal terms, potentially reshaping its business operations and relationships with regulated financial partners.

The SEC’s decision to end its appeal comes after a series of legal setbacks, including a landmark 2023 ruling that found Ripple’s programmatic sales of XRP to retail investors via exchanges did not constitute securities transactions. This partial victory for Ripple sent XRP prices soaring and set a precedent for crypto regulation in the U.S..

Market reaction has been swift. XRP’s price surged to $2.23, with a 24-hour trading volume nearing $3 billion, as optimism grows over the resolution of regulatory uncertainty. Analysts are increasingly bullish, with some forecasting a 95% chance of an XRP exchange-traded fund (ETF) approval in the wake of Ripple’s legal victory. The SEC’s recent approval of Grayscale’s Digital Large Cap Fund conversion to an ETF that includes XRP has further fueled speculation about institutional adoption.

Ripple’s momentum is also supported by technological advances, such as the launch of the XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain, which allows developers to deploy Ethereum-based decentralized applications on the XRP network. The company’s stablecoin, RLUSD, and its RippleNet global payment network continue to gain traction among banks and financial institutions, reinforcing XRP’s position in cross-border payments.

Despite a significant decline in XRP Ledger transactions in Q2 2024, large-scale accumulation by major holders and new partnerships with banks suggest robust long-term prospects. However, regulatory uncertainty and market volatility remain challenges. Analyst projections for XRP range from $4 to $6 in the current cycle, with some optimistic forecasts as high as $10, though such targets remain speculative.

As the legal chapter closes, Ripple is poised to capitalize on renewed regulatory clarity and growing institutional interest, potentially ushering in a new era for XRP and the broader crypto industry.