The lengthy legal battle of Ripple with the U.S. Securities and Exchange Commission (SEC) seems to be approaching its final chapter.
However, a surprising detail has emerged from ongoing settlement negotiations, which may see Ripple paying a reduced fine of 50 million USD using its native token, XRP.
Ripple May Use XRP Token to Pay Fine to SEC
On April 11, Ripple's CEO, Brad Garlinghouse, appeared on FOX Business. In the interview, he revealed that the idea of paying the fine in XRP was raised during settlement discussions.
"The SEC will receive 50 million USD and the U.S. government will also receive 50 million USD, and we have discussed providing that amount in XRP," Garlinghouse stated.
Negotiations are ongoing following Ripple and SEC's decision to drop their appeals, bringing the years-long legal battle closer to an end.
"We are moving past the SEC's battle with cryptocurrency and entering the next phase of the market – the true flow of institutions integrating with decentralized finance," Garlinghouse added in a post on X.
Judge Analisa Torres initially set the fine at 125 million USD in 2024, related to Ripple's unregistered XRP sales to institutional investors. Ripple complied by placing the amount in an interest-bearing account, but the appeals process delayed any further action.
With the appeals now withdrawn, Ripple is expected to pay a reduced fine of 50 million USD.
A recent joint court filing confirmed that both parties have reached a preliminary agreement. They are now seeking final approval from SEC commissioners.
After internal reviews are completed, the parties intend to request an official judgment from the district court.
"There is good cause for the parties' joint request that this Court should stay these appeals. The parties have reached a preliminary agreement, pending Commission approval, to resolve the underlying action, the Commission's appeal, and Ripple's cross-appeal. The parties need additional time to obtain Commission approval for this preliminary agreement, and if approved by the Commission, to seek a dispositive judgment from the district court," the filing states.
If the commission votes in favor, this could end one of the most closely watched legal battles in cryptocurrency history. More importantly, using XRP for settlement could mark a significant shift in the SEC's approach to digital assets.
This change would represent a major regulatory shift and could trigger additional price momentum for the token.
Since Donald Trump's election victory in November 2024, investor confidence in XRP has surged, pushing the token's value up by over 300%.
Simultaneously, institutional interest continues to grow, as seen in the wave of exchange-traded fund applications related to the token.
Market analysts have linked this performance to a more crypto-friendly political environment. They also point to the potential reclassification of XRP as a commodity as a key factor driving the asset's increase.
