Ripple’s Chief Legal Officer, Stuart Alderoty, has shared what he termed his ‘last update’ in the long-standing case between the blockchain company and the Securities and Exchange Commission (SEC).
Alderoty, in his update, confirmed that the SEC has agreed to drop its appeal of the case without conditions, while Ripple has also resolved to withdraw its cross-appeal, he said in an X post on March 25.
Under the terms of the agreement, the SEC will retain $50 million of the $125 million fine originally imposed on Ripple, which has been held in an interest-bearing escrow account in cash. The remaining balance will be returned to the company.
Additionally, the SEC plans to request that the court lift a standard injunction it had previously sought, which restricted certain activities related to Ripple’s XRP sales. These steps, however, remain subject to a Commission vote, the drafting of final documents, and standard court procedures.
“The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever.<…> The agency will also ask the Court to lift the standard injunction that was imposed earlier at the SEC’s request,” the Chief Legal Officer said.
In July 2023, a federal judge ruled Ripple’s institutional XRP sales violated securities laws, but programmatic sales did not.
Notably, in August 2024, the SEC’s $125 million fine was far below its $2 billion demand, leading both sides to appeal.
The decision to drop these appeals has partly been motivated by the onset of a more cryptocurrency-friendly administration and Gary Gensler’s exit from the agency.
What next for XRP price?
Historically, XRP has shown price sensitivity to legal developments in the SEC case, mostly witnessing increased capital inflow. Therefore, these patterns suggest that the current resolution, perceived as a definitive win, could likely help the token target new highs.
When the initial news emerged that the SEC had dropped the case, XRP rallied, but the general market downturn saw the asset fail to clinch the $3 resistance zone.
To this end, XRP recorded a massive capital wipeout in hours. Still, the general momentum has elevated the cryptocurrency to the verge of ranking as the third-largest digital asset by market cap, nearing Tether’s position.
At the same time, legal clarity opens the door for the possible approval of a spot exchange-traded fund (ETF). Several entities have made applications before the SEC, and a decision is expected in October.
The investment product is ideal for attracting institutional capital, with some market players projecting that an XRP ETF could see an inflow of about $8 billion in 2026.
Despite these fundamentals, a section of the market remains unconvinced about XRP’s viability. A Finbold report pointed to a controversial take by cryptocurrency researcher Aylo, who claimed that the token is “the biggest financial scam,” stating that it lacks attributes to justify its current market capitalization.
XRP price analysis
As of press time, the legal development did not appear to impact XRP’s price significantly. The asset was trading at $2.47, up about 1.3% in the last 24 hours. On the weekly chart, it is up over 6%.
XRP seven-day price chart. Source: Finbold
Regarding XRP’s short-term outlook, the general sentiment remains bullish, backed by the token’s 50-day Simple Moving Average (SMA), which stands at $2.39, indicating short-term upward momentum.
The long-term outlook is also bullish, given that XRP’s 200-day SMA is significantly lower at $1.729. Meanwhile, the 14-day Relative Strength Index (RSI) is at 52.87, placing XRP in a neutral zone.
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