XRP Lawsuit: Where Does the Settlement Stand After June 2025?

The Ripple vs. SEC case that gripped the crypto community for over four years finally reached a critical milestone in mid-2025. After months of speculation and legal maneuvering, the question of when the XRP lawsuit would end began to shift toward discussions of what comes next for both the token and the broader industry.

The Lawsuit Journey: From Accusations to Settlement

The SEC’s legal battle against Ripple commenced in 2020, with the regulatory body arguing that XRP sales constituted unregistered securities offerings. However, a landmark 2023 ruling determined that XRP itself is not a security when sold on public exchanges – a significant victory for Ripple and the crypto community. Though the court decision vindicated the company, Ripple still faced a financial penalty: the settlement agreement stipulated a $125 million fine, which was subsequently reduced to $50 million.

The June 2025 deadline represented the final phase of this protracted legal saga. By mid-June, the SEC and Ripple were slated to submit their status report to the Appeals Court, effectively finalizing the withdrawal of appeals and closing this chapter of regulatory conflict.

Market Reaction to the Settlement Progress

When news surfaced that the XRP lawsuit’s resolution was approaching, market participants responded with cautious optimism. Analysis and community sentiment suggested that successful closure of the litigation could provide the boost that XRP had lacked during the prolonged uncertainty. Historical precedent showed that major legal catalysts for tokens typically trigger price movements.

However, markets are unpredictable. As of late February 2026, XRP is trading at $1.39, reflecting a -5.43% decline over the past 24 hours. This modest price point stands in contrast to the more bullish predictions that circulated during 2025, underscoring that regulatory clarity alone does not guarantee sustained price appreciation. The broader market conditions, macroeconomic factors, and investor sentiment all play crucial roles in token valuation.

What’s Next: The XRP ETF and Regulatory Landscape

One of the most watched developments post-settlement has been the possibility of an XRP Exchange-Traded Fund. Polymarket participants assessed the probability of an XRP ETF receiving regulatory approval by year-end 2025 at approximately 98%, suggesting significant conviction in the crypto community that SEC approval would accelerate following the lawsuit resolution.

Whether that optimistic scenario materializes remains to be seen. What is clear is that the settlement effectively removes a major overhang from Ripple’s operations – no more injunctions, no more appeal deadlines, and clearer regulatory footing. For XRP holders, the lawsuit’s conclusion represents a symbolic turning point: the shift from regulatory warfare to coexistence.

The Bigger Picture

The XRP lawsuit served as a bellwether for how U.S. regulators would classify and treat tokens. The 2023 ruling and subsequent settlement provided important precedent that tokens sold on secondary markets can be distinguished from securities offerings – a distinction that reverberates across the entire industry. As the SEC faces potential leadership changes and shifting policy priorities, the resolution of the Ripple case may mark the beginning of a new era for crypto regulation, though challenges and uncertainties naturally persist.