Ripple’s long-running legal clash with the US Securities and Exchange Commission (SEC) appears to be nearing its final chapter.
However, a surprising detail has emerged from the ongoing settlement talks, which could see Ripple pay its reduced $50 million penalty using its native token, XRP.
Ripple Could Use XRP Token to Pay SEC Fine
On April 11, Ripple CEO Brad Garlinghouse appeared on FOX Business. At the interview, he revealed that the idea of paying the penalty in XRP was floated during settlement discussions.
“The SEC is going to end up with $50 million and the US government gets $50 million and we talked about making that available in XRP,” Garlinghouse stated.
The ongoing negotiations follow Ripple’s and the SEC’s decision to drop their appeals, bringing the multi-year legal battle closer to closure.
“We’re moving past the SEC’s war on crypto and entering the next phase of the market – true institutional flows integrating with decentralized finance,” Garlinghouse added in a post on X.
Judge Analisa Torres originally set the fine at $125 million in 2024, linking it to Ripple’s unregistered XRP sales to institutional investors. Ripple complied by placing the funds in an interest-bearing account, but the appeals process delayed any further action.
With those appeals now abandoned, Ripple is expected to pay a reduced fine of $50 million.
A recent joint court filing confirms that both sides have reached a preliminary agreement. They are now seeking final approval from the SEC’s commissioners.
Once internal reviews are complete, the parties plan to request a formal ruling from the district court.
“There is good cause for the parties’ joint request that this Court put these appeals in abeyance. The parties have reached an agreement-in-principle, subject to Commission approval, to resolve the underlying case, the Commission’s appeal, and Ripple’s cross-appeal. The parties require additional time to obtain Commission approval for this agreement-in-principle, and if approved by the Commission, to seek an indicative ruling from the district court,” the filing stated.
If the commission votes in favor, this case could conclude one of the most closely watched regulatory battles in crypto history. More importantly, the use of XRP for the settlement could mark a significant shift in the SEC’s approach to digital assets.
This turnaround would represent a major regulatory shift and could trigger further bullish momentum for the token.
Since Donald Trump’s election victory in November 2024, investor confidence in XRP has grown sharply, pushing the token’s value up by more than 300%.
At the same time, institutional interest continues to rise, as seen in the wave of spot exchange-traded fund applications tied to the token
Market analysts have linked this performance to the friendlier political climate. They also point to the potential reclassification of XRP as a commodity as a key factor driving the asset’s rise.
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