Ripple’s long-standing legal conflict with Securities and Exchange Commission of the United States (Sec) seems to approach its last chapter.
However, a surprising detail emerged on current settlement talks, which could see Ripple paying for his reduced penalty by $ 50 million using his native token, XRP.
Ripple could use the XRP token to pay the dry fine
On April 11, the CEO of Ripple Brad Garlinghouse appeared on Fox Business. During the interview, he revealed that the idea of paying the penalty in XRP was floated during settlement discussions.
“The SEC will end up with $ 50 million and the United States government obtains $ 50 million and we have spoken to make it available in XRP,” said Garlinghouse.
The current negotiations follow Ripple and the decision of the dry to drop their calls, bringing together the multi -year legal battle for the closure.
“We go beyond the dry war against the crypto and enter the next phase of the market – the real institutional flows integrating into decentralized finance,” added Garlinghouse in an article on X.
Judge Analisa Torres initially set the fine at $ 125 million in 2024, connecting it to the unregistered XRP sales of Ripple to institutional investors. Ripple conforms by placing the funds in an account of interest, but the call process has delayed any other action.
With these now abandoned calls, Ripple should pay a reduced fine of $ 50 million.
A recent joint judicial file confirms that the two parties have entered into a preliminary agreement. They are now looking for the final approval of the SEC commissioners.
Once the internal examinations are completed, the parties plan to request an official decision from the district court.
“There is a good cause at the joint request of the parties that this court put these in suspense calls. The parties have reached an agreement in principle, subject to the approval of the Commission, to resolve the underlying case, the call of the Commission and Ripple’s Cross-Appled. The parties need additional time to obtain the approval of the Commission for this Agreement of the Courage of the Commission.
If the Commission votes in favor, this case could conclude one of the most closely watched regulatory battles in the history of cryptography. Most importantly, the use of XRP for the regulations could mark a significant change in the DRI approach to digital assets.
This turnaround would represent a major change in regulation and could trigger a bullish dynamic for the token.
Since Donald Trump’s electoral victory in November 2024, investors’ confidence in XRP has increased sharply, pushing the value of the token by more than 300%.
At the same time, institutional interests continue to increase, as shown in the wave of requests for negotiated grants linked to the token
Market analysts have linked this performance to the more user -friendly political climate. They also underline the potential reclassification of XRP as commodity as a key factor stimulating the boom in the asset.
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