XRP Surges as Ripple Ends SEC Case with $125M Settlement

XRP is experiencing renewed optimism as Ripple officially concludes its multi-year legal battle with the U.S. Securities and Exchange Commission (SEC). This major development offers the regulatory clarity the crypto community has long awaited and may ignite a new chapter for XRP’s market performance.

On June 27, Ripple CEO Brad Garlinghouse confirmed a groundbreaking move: the company is voluntarily withdrawing its cross-appeal in the ongoing lawsuit with the SEC. In return, Ripple has agreed to pay a $125 million civil penalty. The SEC is also expected to drop its similar appeal, effectively closing the courtroom chapter that stretched over four years.

Earlier in the week, Judge Analisa Torres rejected a joint plea from Ripple and the SEC to lower the penalty to $50 million and lift the ban on Ripple’s institutional sales of XRP. The judge firmly ruled that the parties had failed to provide sufficient cause for modifying her earlier decision, leaving them with only two options: proceed with appeals or accept the final ruling. Ripple chose to end it.

So, what’s next for XRP following this legal closure? The market has responded positively. At the time of this development, XRP was trading at $2.18—marking a modest gain of 1.85% in early trading hours. Building on this momentum, the team at Google’s AI platform Gemini was asked to project possible future outcomes for XRP’s valuation in the wake of the lawsuit’s conclusion.

According to Gemini’s analysis, the end of regulatory uncertainty may serve as a powerful catalyst for XRP’s price surge. The AI points to historical precedents, such as the sharp 70% increase that followed Ripple’s partial victory in July 2023, to suggest that XRP could jump to a range of $3.00 to $3.50 in the short term.

Beyond these immediate reactions, Gemini envisions a more ambitious upward trajectory. With legal barriers now cleared, Ripple is free to accelerate its expansion across U.S. markets, potentially drawing interest from a growing base of institutional partners. The new post-litigation landscape could see banks and financial services firms more willing to integrate RippleNet, Ripple’s enterprise blockchain network.

One factor generating substantial buzz is the potential introduction of a spot XRP ETF. With Bloomberg now placing odds of such an ETF’s approval at 95%, momentum is shifting in XRP’s favor. Gemini notes that the launch of a well-received XRP ETF could add immense liquidity to the market and greatly increase investor accessibility.

In addition, increasing interest from developers building on the XRP Ledger adds yet another layer of promise. Utility-driven initiatives are expected to reinforce XRP’s staying power, potentially elevating the token’s long-term valuation.

Taking all these factors into account, Gemini posits that XRP could target values between $5 and $8 within the next year. A moderate gain to $5 would reflect consistent progress, while a climb to $8 would suggest rapid traction—fueled by landmark catalysts such as ETF approval, mainstream adoption, and a broader crypto bull cycle.

To understand the significance of this moment, it’s vital to revisit the origin of this years-long conflict. The SEC initially filed its lawsuit in December 2020, alleging that Ripple had illegally raised $1.3 billion through unregistered XRP sales. Ripple countered by asserting that XRP is a decentralized digital asset, not a security under U.S. law.

In a partial ruling in July 2023, Judge Torres sided with Ripple on a crucial point: XRP itself is not a security when sold on exchanges. However, she also ruled that institutional sales of XRP had violated securities laws, justifying the $125 million fine. In the months that followed, both Ripple and the SEC filed appeals, with hopes of reshaping aspects of this complex judgment.

Progress seemed likely in early 2025 when a new SEC leadership signaled openness to a $50 million settlement. However, the judge’s recent stance cemented the original penalties and orders—including a permanent ban on Ripple’s institutional XRP sales. In response, Ripple acted decisively to close the case by abandoning its appeal, signaling a strong intent to shift from litigation to innovation.

Related: Expert Advice: Sell XRP If You’re Confused

While some observers may still watch for lingering effects, the pivotal outcome remains clear: XRP maintains its status as a non-security on public exchanges, and Ripple is now better positioned than ever to advance without looming legal entanglements.