The recent update on the Ripple settlement clarifies that Ripple is not paying the SEC fine using XRP tokens. Despite rumors circulating on social media that Ripple might settle its SEC fine with XRP while the token price is low, former SEC official Marc Fagel confirmed that Ripple is paying the fine in cash, which has already been set aside in an escrow account.
The proposed settlement involves Ripple paying a $50 million penalty to the SEC, with the remaining $75 million of the $125 million escrowed amount to be returned to Ripple. This joint motion to modify the court order also seeks to lift the injunction that has prevented Ripple from selling XRP to institutional investors, a critical part of Ripple's business strategy.
The case is still awaiting a key SEC filing due by mid-August 2025, and the court's decision could come sooner than expected. The settlement would likely end the nearly five-year-long legal battle and provide regulatory clarity for XRP, potentially boosting investor confidence and institutional adoption.
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