Ripple’s $125M SEC Fine Could Stay as Case Nears Conclusion
Ripple vs SEC may end with $125M fine remaining as is, says expert Fred Rispoli.
The case has been ongoing since 2020 and is currently under review at the Second Circuit Court of Appeals with Ripple’s response due by April 16, 2025.
My new theory on SEC vs. Ripple:
No reason why the current 2-1 pro-crypto Commission wouldn't drop the appeal and keep the $125M judgment in place. Starting to think they are waiting for Atkins in order to have the head guy in place for cover to drop/reduce the $125M judgment.
— Fred Rispoli (@freddyriz) March 7, 2025
Rispoli thinks the SEC delay might be due to upcoming leadership changes. With acting SEC Chair Mark Uyeda overseeing a pro-crypto 2-1 commission majority, analysts speculate the agency might be waiting for a new chair, possibly Paul Atkins, to take office.
SEC dropped cases against Kraken, Coinbase and ConsenSys but not Ripple.
Ripple’s institutional sales of XRP were classified as securities in 2023.
Ripple is challenging the sales restrictions imposed by the SEC ruling.
Dropping the appeal while keeping the $125M penalty intact would allow the SEC to avoid further litigation while maintaining their stance on Ripple’s past violations.
Can Ripple Pay the Fine in XRP?
Market analysts including Vincent Van Code think Ripple might try to settle the fine in XRP instead of cash. The idea is that the US government could accept XRP as part of a new crypto strategic reserve—a claim that got traction after former President Donald Trump confirmed XRP’s inclusion in the country’s digital asset strategy.
Ripple holds approximately 37.1 billion XRP in escrow.
Some analysts think Ripple could transfer XRP instead of USD to settle fines.
SEC has not commented on alternative settlement options.
I wonder when the Ripple vs Sec ends, that Ripple pays the U.S Treasury in XRP($125m worth) to start our US “stockpile” from the lawsuit ! Trump then also releases news on 0% tax on US Crypto and Ripple could even give U.S Government more due to their locked up XRP. The finale…
— CryptoJer (@deathbcomesu) March 7, 2025
Despite the speculation, Rispoli and other legal experts doubt the feasibility of this arrangement, citing the slow progress in negotiations and no formal discussions on alternative payment methods.
Legal Battle Over XRP Sales Restrictions Continues
Ripple has agreed to pay the $125M penalty but the bigger fight is over XRP being a security. In 2023, Judge Analisa Torres ruled Ripple’s institutional sales of XRP violated securities laws and restricted the company from selling XRP to banks and institutions.
Ripple is appealing the ruling that limits XRP sales to institutions.
Legal experts think this is why the SEC has not dropped the case.
Ripple’s CTO, David Schwartz, reiterated that XRP’s total supply cannot increase.
As the April 16 deadline approaches, the crypto world is watching closely. A final outcome could bring regulatory clarity for XRP and other cryptos in the US.
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