Ripple, War with SEC Ends... 97% Settlement Reduction Signals XRP Reversal

▲ Ripple (XRP) vs SEC/ChatGPT generated image

The long-standing legal dispute between Ripple and the U.S. Securities and Exchange Commission has concluded with a significant reduction in the settlement amount and the withdrawal of the appeal. As a result, XRP has entered a new phase of institutional capital inflow, asserting its status as a digital commodity.

In a video released on May 6 (local time), Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, analyzed that the resolution of five years of legal risk has brought a fundamental change to XRP's market value. Ripple concluded the lawsuit by agreeing to pay a settlement of $50 million, more than 97% lower than the $2 billion originally demanded by the Securities and Exchange Commission (SEC). In particular, the Commission's official withdrawal of its appeal solidified Judge Torres's 2023 ruling as a final precedent, providing strong regulatory clarity to the XRP market.

The joint classification of XRP as a digital commodity by the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC) in March 2026 is also considered a major turning point for the virtual asset market. Furthermore, the U.S. cryptocurrency market structure bill, which is scheduled for Senate committee review in May, is expected to be signed by the U.S. President by the end of June and take effect before Independence Day on July 4. This legislative progress is considered a key variable that goes beyond simple regulatory adjustments to create a legitimate channel for large-scale capital to enter the virtual asset market.

The void left by the resolution of regulatory risks is rapidly being filled by institutional investor funds. Following the launch of Ethereum (ETH) spot ETFs and Bitcoin (BTC) spot ETFs in November 2025, the XRP spot ETF has surpassed $1.3 billion in cumulative inflows, showing strong growth. The fact that global financial institutions such as Santander and American Express have begun directly incorporating XRP into their capital portfolios through Ripple's Strategy products also demonstrates a shift in its nature from a speculative asset to an institutional-grade real asset.

Technical trends are also fueling expectations of a price surge. After hitting a high of $2.4 at the beginning of the year, XRP built a strong support level in the $1.21-$1.4 range and underwent an accumulation phase. Inflows of funds through open interest and XRP spot ETFs are acting as a backdrop for price increases, and trading volumes on major U.S. exchanges have surpassed pre-lawsuit levels. Analysis suggests that if the bill takes effect in early July and liquidity is supplied due to the wartime economy, the possibility of a broader market rally will also increase.

The conclusion of Ripple's lawsuit and its integration into the institutional framework is regarded as a symbolic event that sets a regulatory standard for the entire virtual asset industry. Unlike Bitcoin, where assets are concentrated in specific custodians, Ripple is expanding diversified institutional custody solutions, strengthening its infrastructure competitiveness. With its institutional foothold established, XRP is moving beyond legal risks to a new phase of global payment innovation and asset revaluation.

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