Ripple SEC Lawsuit Nears the End as $75M is Returned

Key Points

• Ripple SEC Lawsuit Nears the End as $75M is Returned
• XRP sales to institutional investors are now allowed
• Lawsuit wraps up after years of legal battles with the SEC
• XRP price remains flat despite the positive development

After years of regulatory tension, Ripple has reached a favorable settlement with the U.S. Securities and Exchange Commission (SEC). In a significant move, the agency has agreed to return $75 million out of a $125 million fine originally imposed on Ripple. The remaining $50 million will be retained by the SEC, which had kept the amount in an interest-bearing escrow account.

This development signals the final chapter in the Ripple SEC lawsuit, which has cast a shadow over the crypto landscape since late 2020. Ripple’s Chief Legal Officer stated that this update will likely be his “last ever” on the case, emphasizing the closure.

The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever…

Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an…

— Stuart Alderoty (@s_alderoty) March 25, 2025

As part of the settlement, Ripple and the SEC agreed to drop all cross-appeals, and the court will be asked to lift the injunction previously placed at the SEC’s request. For Ripple, this is more than just a win—it’s a chance to rebuild investor confidence and resume growth, especially among institutional players.

XRP Institutional Sales Now Back on the Table

One of the biggest restrictions Ripple faced during this legal journey was the ban on selling XRP to institutional investors. This constraint, established in the earlier phases of the lawsuit, significantly limited Ripple’s operations and partnerships.

Now, that restriction is gone.

The SEC has agreed to lift the ban, allowing Ripple to legally sell XRP to institutional investors. This opens the door to increased liquidity, new institutional partnerships, and possibly ETF developments down the road.

🚨BREAKING: Ripple & the SEC have settled, @ripple will get $75M from escrow and the SEC keeps $50M. pic.twitter.com/BiBfOM52Oi

— Armando Pantoja (@_TallGuyTycoon) March 25, 2025

Ripple’s push for XRP to be classified as a commodity, instead of a security, also gains momentum. A favorable ruling in this area could follow in the footsteps of Bitcoin and Ethereum, both of which are considered non-securities by regulators—making them eligible for spot ETFs, like the recent Mt. Gox Bitcoin Payout movement that shifted over $1 billion in assets (read more).

Legal Victory but Price Reaction Remains Muted

Despite the legal clarity, XRP’s price hasn’t seen a significant breakout. Over the past week, the token is up nearly 10%, but it still struggles to break past the $2.50 mark. Broader market conditions and a generally bearish sentiment have kept many altcoins subdued, including XRP.

XRP Weekly Price Chart. Source: Techtoken

Moreover, XRP’s low decentralized exchange (DEX) trading volume has raised concerns within the community. As the industry watches projects like PumpSwap surpass $1 billion in DEX volume (see report), XRP’s relatively low activity suggests that investors may still be cautious.

However, Ripple’s legal progress could pave the way for a resurgence in trading activity, especially if institutional investors begin re-entering the XRP ecosystem.

Implications for Crypto Regulation and Market Sentiment

The Ripple SEC lawsuit has become a landmark case for the entire crypto industry. It shaped conversations around how regulators view digital assets and set a precedent for future cases. This settlement could influence how regulators treat other projects currently under scrutiny or enforcement risk.

Projects like Tornado Cash, which may face renewed sanctions (read warning), and ongoing concerns around market manipulation, especially following Trump’s recent crypto corruption claims (explore more), show how regulatory uncertainty remains a major concern for the space.

Ripple’s win offers a roadmap for resolving disputes—through negotiations and settlements instead of prolonged court battles.

What’s Next for Ripple and the XRP Ecosystem?

With its legal cloud clearing, Ripple can now focus on scaling XRP adoption, especially through institutions. This comes at a time when stablecoins and alternative payment solutions are also gaining traction, such as the recent USD1 stablecoin launch on BNB Chain (details here).

The XRP ecosystem may benefit from this renewed momentum, as Ripple’s legal status is no longer in question. Analysts are watching closely to see whether this shift will drive long-term bullish sentiment and encourage new enterprise adoption.

Ripple’s legal win doesn’t just impact XRP—it signals that crypto companies can push back against overreach, negotiate, and come out with solutions that protect innovation without compromising on compliance.