Ripple Nears Landmark SEC Settlement: $50M Fine May Be Paid in XRP Token

Ripple’s high-profile legal dispute with the U.S. Securities and Exchange Commission (SEC) appears to be heading toward resolution — and in a move that could reshape crypto regulation, the company may settle by paying its $50 million penalty in XRP, its own native cryptocurrency.

Ripple’s Legal Battle Inches Toward Final Resolution

The multi-year legal standoff between Ripple Labs and the SEC, centered around the classification of XRP as a security, is approaching its conclusion. A joint court filing submitted this week confirms that both parties have reached an agreement-in-principle, contingent on final approval by SEC commissioners.

At the center of the talks is a reduced $50 million penalty — a significant drop from the original $125 million fine imposed in 2024 by Judge Analisa Torres, related to Ripple’s past XRP sales to institutional investors. Ripple had previously placed the fine amount in an interest-bearing account while appeals from both sides were underway.

Now, with those appeals dropped, the two sides are entering the final stages of settlement.

XRP as a Fine: A Game-Changer?

What makes this resolution particularly notable is Ripple's proposal to pay the fine in XRP tokens. Speaking in an April 11 interview with FOX Business, Ripple CEO Brad Garlinghouse confirmed the idea was seriously discussed during negotiations.

“The SEC is going to end up with $50 million, and the U.S. government gets $50 million — and we talked about making that available in XRP,” Garlinghouse said.

If accepted, the use of XRP for regulatory settlement could signal a seismic shift in the SEC’s posture toward digital assets. It would also mark the first time a crypto company paid a federal fine using its own token, potentially paving the way for broader regulatory recognition of certain cryptocurrencies as legitimate, liquid assets.

What’s Next?

The parties are now awaiting internal SEC approval before seeking a formal ruling from the district court. The joint legal filing highlights the procedural steps:

“The parties have reached an agreement-in-principle, subject to Commission approval… The parties require additional time to obtain Commission approval and, if approved, to seek an indicative ruling from the district court.”

Should the Commission vote in favor, this could bring an end to one of the most closely scrutinized regulatory confrontations in the crypto industry’s history.

XRP Surges as Institutional Confidence Builds

The potential resolution arrives amid growing investor optimism around XRP. Following Donald Trump’s presidential victory in November 2024, the token’s value has soared by over 300%, buoyed by a more crypto-friendly political outlook and a surge in institutional interest.

Analysts point to ongoing ETF applications tied to XRP, as well as speculation that the asset could soon be reclassified as a commodity, as key factors driving its performance.