Ripple Clinches Major Legal Victory as SEC Settlement Nears Final Approval, But Commissioner Crenshaw Disagrees and Warns of ‘Regulatory Vacuum’

Ripple And SEC Move To Finalise $50 Million Deal As Legal Battle Nears End

Ripple Labs and the US Securities and Exchange Commission have jointly requested court approval to dissolve the injunction imposed on Ripple and finalise a $50 million settlement, returning $75 million of the original $125 million penalty back to the company.

The motion was filed with Judge Analisa Torres at the US District Court for the Southern District of New York, aiming to formally close one of the longest-running enforcement cases in crypto history.

This request signals the last stage of a lawsuit that began in December 2020, when the SEC alleged Ripple sold XRP as an unregistered security.

XRP Price Surges As Traders Anticipate Court Approval

The market responded swiftly to the joint motion, with XRP soaring over 10% in early Thursday trading.

At its peak, XRP touched $2.33, before settling around $2.31 — still up 8.23% over the previous 24 hours.

Analysts suggest that continued positive court developments and a stable market could propel XRP towards $3.00 and potentially even $7.00.

Polymarket odds for an XRP ETF approval by 31 December 2025 have recently ranged between 77% and 85%, reflecting growing market confidence.

This comes as Bloomberg ETF analysts recently revised their approval forecast for XRP spot ETFs — including those from Grayscale, 21Shares, WisdomTree, Bitwise, Canary, and Franklin Templeton — from 65% to 85%, citing changes in SEC leadership and policy.

Ripple Strengthens Position With Big Acquisitions

Despite the legal turbulence of recent years, Ripple appears financially healthy and is actively expanding.

In April, the company acquired prime brokerage firm Hidden Road for $1.2 billion.

Around the same time, Ripple reportedly made a $5 billion acquisition offer for USDC issuer Circle, though that was ultimately declined.

Now free from its court restrictions — pending final approval — Ripple is expected to accelerate its acquisition strategy, both within the US and internationally.

Its growing influence in Washington is also becoming more apparent, with increased lobbying efforts and closer ties to the Trump administration.

SEC Commissioner Crenshaw Voices Strong Opposition

Not everyone at the SEC agrees with the direction.

In a statement on 8 May, SEC Commissioner Caroline Crenshaw sharply criticised the settlement, warning that it undermines previous regulatory wins and could limit the agency’s ability to hold crypto firms accountable.

Crenshaw said,

“This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws,”

She added,

“It creates more questions than answers.”

Crenshaw warned that approving the deal would leave a “regulatory vacuum” as the SEC continues to retreat from earlier enforcement policies shaped under former Chair Gary Gensler.

What Happens Before The Case Can Officially Close?

Legal experts caution that the process is not yet over.

According to former federal prosecutor James Filan, Judge Torres must first issue an indicative ruling.

“Judge Torres needs to provide an indicative ruling as to whether the Court would: (1) dissolve the injunction and release the escrow with $50 million going to the SEC and the balance back to Ripple.”

If that happens,

“the SEC and Ripple will ask the Second Circuit for a limited remand back to Judge Torres to ask for the relief described above.”

This will allow the case to return to Torres for the final settlement motion.

Only after the injunction is formally lifted and the funds redistributed,

“the SEC and Ripple will ask the Court of Appeals to dismiss the SEC’s appeal and Ripple’s cross-appeal.”

Once that occurs,

“then it will be over.”

This will officially close the case — nearly five years after it began.