Cryptocurrency XRP (XRP) is rising as rumors grow louder that Ripple Labs is close to settling its long running legal battle with the U.S. Securities and Exchange Commission (SEC).
XRP was trading up as much as 3% in a volatile trading session as multiple media reports say that Ripple Labs could soon reach a resolution with the SEC in a case that has been ongoing since 2020. The SEC has accused Ripple Labs of raising $1.3 billion through unregistered sales of its XRP crypto token.
Ripple’s legal team is reportedly trying to renegotiate a 2023 court ruling by District Judge Analisa Torres of the Southern District of New York. That decision required Ripple Labs to pay a $125 million penalty for its institutional XRP sales, which the court deemed unregistered securities offerings.
Ripple Labs is a U.S.-based technology company that offers enterprise blockchain products on the XRP Ledger.
New SEC Leadership
The penalty imposed by Judge Torres was far less than the $2 billion fine sought by the SEC. The Wall Street regulator had been in the process of appealing Judge Torres’ ruling shortly before former SEC Chair Gary Gensler resigned his position leading the enforcement agency.
Judge Torres’ ruling was widely viewed as a victory for Ripple Labs when it was issued because the court also ruled that sales of XRP to retail investors do not constitute securities transactions. Now that the SEC is under new leadership, its investigations into crypto companies have been pulled back and many of its ongoing lawsuits have been dropped.
XRP’s price has declined 3% so far in 2025.
Is XRP a Buy?
Most analysts don’t offer ratings or price targets on XRP. So instead we’ll look at the cryptocurrencies three-month price performance. As one can see in the chart below, XRP’s price has fallen 7% over the last 12 weeks.
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