XRP’s Legal Clarity Nears as Ripple-SEC Lawsuit Approaches Final Resolution

The prolonged legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing its conclusion, though final procedural steps remain. Ripple CEO Brad Garlinghouse confirmed the withdrawal of its cross-appeal, with the SEC expected to follow suit, signaling a potential end to one of the cryptocurrency industry's most high-profile lawsuits. Legal experts highlight that while the resolution is imminent, formalities such as the SEC's response and court approvals must still be completed. Notably, Judge Torres recently rejected a joint proposal to reduce Ripple's civil penalty to $50 million, indicating the court's rigorous scrutiny. This development marks a critical milestone for XRP, as clarity from the lawsuit could bolster investor confidence and pave the way for broader adoption in the financial sector. The outcome is poised to set a precedent for how regulatory bodies approach digital assets in the future.

Ripple vs SEC Lawsuit Nears Conclusion but Final Hurdles Remain

Legal experts caution that the Ripple-SEC lawsuit, while nearing resolution, still faces procedural formalities before being fully settled. Ripple CEO Brad Garlinghouse confirmed the withdrawal of its cross-appeal, with the SEC expected to follow suit—potentially ending one of crypto's most protracted legal battles.

Judge Torres recently rejected a joint SEC-Ripple proposal to reduce Ripple's civil penalty to $50 million and lift a permanent injunction. The settlement's collapse means the SEC must now hold a separate commissioner vote to formally dismiss its appeal, a step former SEC official Marc Fagel describes as inevitable but pending.

The injunction against Ripple remains active, with Fagel warning that distributing XRP through third parties could still trigger securities law violations. Market participants await final confirmation from SEC commissioners to close this chapter definitively.

XRP Price Surges Amid Whale Accumulation and Market Resilience

XRP has surged to $2.17, marking a fresh upward trend as whale activity signals growing confidence. CryptoQuant data reveals the 90-day moving average of whale flows turned positive in early May—a historically bullish indicator. The last time this metric flipped green, XRP rallied 420% in a single month.

Whale wallets holding over 1 million XRP hit a record 2,850, while mid-tier wallets (10,000+ XRP) grew 6.2% year-to-date. Despite Binance volumes dropping to August 2020 lows, XRP has maintained monthly closes above $2 since December 2024. Ripple CTO David Schwartz's confirmation of upcoming acquisitions has further bolstered sentiment.

Is XRP a Good Investment Right Now? Signs Point to Cautious Optimism

XRP has surged 4.5% in 24 hours, trading NEAR $2.18, reigniting debate over its investment potential. The cryptocurrency's legal outlook is improving as the SEC case narrows—court rulings now clarify that XRP is not a security in open market sales, only in institutional transactions. Ripple's decision to drop its cross-appeal, coupled with expectations of the SEC following suit, is restoring institutional confidence.

Wall Street is taking notice. ProShares Trust has greenlit three XRP futures ETFs, while CME Group prepares to list XRP futures—a move that could unlock deeper institutional participation. Meanwhile, on-chain data reveals a 95% spike in crypto millionaires year-over-year, with over 325 wallets holding $100M+ in digital assets. This accumulation signals growing conviction in blue-chip cryptocurrencies like XRP.

Yet risks remain. Regulatory clarity remains partial, and the SEC could still appeal key rulings. Market volatility persists despite institutional tailwinds. Investors weighing XRP's potential should balance its improving fundamentals against lingering uncertainties.

Ripple's Post-SEC Legal Clarity: XRP's Status and Institutional Sales Restrictions

Judge Analisa Torres' landmark July 2023 ruling established that XRP traded on exchanges doesn't qualify as a security, creating a critical distinction between programmatic sales and institutional transactions. The court maintained Ripple's direct sales to sophisticated investors constituted unregistered securities offerings, resulting in a $125 million penalty now held in escrow.

While Ripple faces permanent restrictions on institutional XRP sales, the company retains authorization for open market transactions. This bifurcated legal outcome leaves the blockchain firm navigating a narrow operational corridor—able to leverage XRP's utility token status for retail liquidity while restructuring institutional engagement strategies.

XRP Poised for Breakout as Institutional Interest Grows

XRP has defied typical cryptocurrency volatility by maintaining a tight trading range between $2.00 and $2.60 for over four months. This unusual stability in Ripple's flagship asset comes amid strategic moves by the company to strengthen its position in institutional finance.

The acquisition of prime brokerage firm Hidden Road for $1.25 billion signals Ripple's ambitions to compete with traditional financial giants. This strategic purchase will likely leverage Ripple's stablecoin RLUSD as collateral within Hidden Road's services.

CME data reveals surging institutional interest, with XRP futures volume exceeding $542.8 million in a single month. Technical analysts suggest a breakout above the $2.65 resistance level could propel XRP toward targets between $5 and $30.

Is XRP Finally Free? What Ripple’s Settlement Means for Investors

Ripple Labs has withdrawn its cross-appeal against the U.S. SEC, potentially concluding a landmark legal battle that spanned nearly four years. CEO Brad Garlinghouse announced the decision on social media, framing it as a definitive close to the chapter. The SEC is expected to follow suit by dropping its appeal, bringing finality to a case that has loomed over the crypto industry.

The SEC's 2020 lawsuit accused Ripple of raising $1.3 billion through unregistered securities sales via XRP. A 2023 court ruling partially vindicated the token, declaring exchange sales non-violative of securities laws—though institutional sales worth $728 million were deemed non-compliant. Legal experts caution against premature celebration, noting unresolved complexities.

Ripple’s Chief Legal Officer Stuart Alderoty clarified that the withdrawal doesn’t alter XRP’s legal classification as a non-security. The company now shifts focus to operational priorities, signaling a strategic pivot from litigation to business execution.