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SEC Drops Ripple’s ’Bad Actor’ Label – XRP Now Cleared for Private Market Fundraising Frenzy

SEC Drops Ripple’s ’Bad Actor’ Label – XRP Now Cleared for Private Market Fundraising Frenzy

Published:
2025-08-09 11:15:14
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The SEC just handed Ripple Labs a get-out-of-jail-free card—scrubbing its controversial 'bad actor' designation in a move that unleashes XRP's fundraising potential.

Private markets, brace for impact.

Ripple's legal limbo ends with a whimper

No fines. No admissions. Just a quiet deletion from the SEC's naughty list. Suddenly, institutional investors can't claim they're 'too scared' to touch XRP—though some might still clutch pearls for old times' sake.

Fundraising floodgates swing open

With the regulatory cloud lifted, Ripple can now tap private capital like any other crypto firm pretending to need money. Expect slick decks about 'enterprise blockchain solutions' and 'liquidity corridors' at your next VC happy hour.

XRP army pops champagne (again)

The usual suspects are already spinning this as 'total vindication'—never mind that SEC scrutiny technically shifted rather than vanished. But hey, in crypto-land, any win that isn't outright destruction counts as a moon mission.

Finance jab of the day: Nothing unshackles innovation like regulators deciding you're no longer interesting enough to prosecute.

Order returns Ripple to pre-lawsuit position

Speaking on the decision, pro-XRP attorney and former US Senate candidate John Deaton stated that it now means Ripple can proceed with its business as if the 5-year lawsuit never happened. It is the final diamond in the crown of the Ripple and SEC settlement.

He said:

“@Ripple can continue to raise money in the private markets. One might even argue, it’s business as usual – as if the lawsuit against Ripple and the $125M fine never happened.”

Unsurprisingly, many in the XRP community have welcomed the decision, which they consider a massive victory for Ripple and a major boost for the token. However, some users were still critical of the SEC, noting that the years of uncertainty have left XRP trailing and with losses for investors who held through the long winter for the token.

If it is any consolation, the complete legal victory for Ripple has led to massive gains for XRP, with the token gaining more than 12% over the past seven days. It is now trading at $3.338.

The token has also risen 36.76% in value over the last 30 days and gained 43.86% year to date to be one of the best performers, even better than ETH, which is on a resurgence trend, or Bitcoin, with its multiple all-time highs in 2025.

XRP set for further gains

Meanwhile, analysts believe XRP is primed for further gains and justify the potential performance based on current market trends. For instance, Santiment data notes that utility spikes on the XRP Ledger network suggest the token could see more rally because previous on-chain surges have increased prices.

Ripple regains fundraising freedom as SEC lifts bad actor ban post-lawsuit

XRP on-chain price hints at further gains for the token (Source: Santiment)

Glassnode data also shows that XRP’s future activity has increased, with 24-hour volume up by 208%, reaching $12.4 billion. This is far above that of solana with $9.6 billion and shows that more people are piling on XRP perps.

Open interest has also risen by 15% to $5.9 billion, with a positive funding rate that suggests that most traders are long on the asset. While this reflects the overwhelming bullish sentiment, analysts warn that the liquidation risks are also high if the price should fall.

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