Federal Judge Rejects Ripple-SEC $50M Settlement Bid

• A federal judge rejected Ripple and the SECs joint US$50 million settlement request, criticising both parties for attempting to bypass her permanent injunction against Ripples securities law violations.
• Investors are increasingly betting on XRP and altcoin ETF approvals, with analysts citing renewed ETF speculation and expected legal clarity in 2025 as key catalysts driving XRP toward US$3.
• Despite recent volatility and US$105 million in liquidations, analysts believe XRP is regaining momentum through institutional confidence, futures products like ProShares UXRP, and a softer SEC stance under crypto-friendly leadership.

The long-running lawsuit between crypto-native firm Ripple and the U.S. Securities and Exchange Commission (SEC) is drawing to a close, and investors are taking note. Although the case is as good as closed, technicalities are preventing full resolution.

A U.S. federal judge has rejected a joint request by Ripple Labs and the SEC to approve a reduced US$50 million (AU$76.7 million) settlement in their civil lawsuit. Judge Analisa Torres criticised both parties for attempting to bypass her permanent injunction against Ripples violation of securities laws.

Nevertheless, most observers believe that with a now crypto-friendly SEC, its only a matter of time before the case finally ends.

Related: XRP Holders Warned as Ripple Co-Founder Chris Larsen Moves 50M Tokens to Exchanges

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Data from Bitget show that investors are increasingly betting on XRP and the approval of related exchange-traded funds (ETFs), which are also under review by the SEC. Its not only XRP; Solana, as another major altcoin, is also receiving significant attention.

Ryan Lee, Chief Analyst at Bitget, told Crypto News Australia in an emailed statement that renewed ETF speculation and legal clarity surrounding Ripples SEC lawsuit resolution in March 2025 are significant catalysts driving XRP toward the $3 mark.

The Bitget analysts see rising institutional interest and ETF speculation as key drivers behind bullish momentum in XRP and Solana. While macroeconomic risks remain, they note:

The approval of XRP futures ETFs, such as ProShares UXRP, and potential spot ETF developments are boosting institutional interest and market liquidity, supporting a bullish near-term trajectory for XRP.

Ryan Lee, Chief Analyst at Bitget

Solana, meanwhile, is gaining traction from ecosystem growth and payment adoption, with near-term targets of US$200US$250 (AU$306-AU$383). Both assets are seen as fundamentally resilient despite regulatory and market uncertainties.

James Toledano, Chief Operating Officer at Unity Wallet, said that waters are a little choppy for XRP, given its lower price compared to Bitcoin, which makes price swings more violent.

But, he also noted that XRP is regaining momentum as ETF optimism and legal clarity converge, adding that Institutional confidence has strengthened since Ripples partial legal win in March, and futures products like ProShares UXRP are fueling speculation about a potential spot ETF becoming a reality.

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Related: XRP a Different Network as Retail Traders Exit and Big Players Take Over

Toledano suggests that a softer SEC stance and rising institutional inflows are strengthening XRPs legitimacy and liquidity, making a continued rally plausible despite recent volatility and liquidations.

With the SEC maintaining a softened posture, many see a structural step forward for XRPs legitimacy in U.S. markets. Despite recent volatility and $105/million in liquidations, improving liquidity, growing institutional flows, and ETF-driven optimism are aligning, making a continued rally plausible if inflows and optimism continue to converge.

At the time of writing, XRP remains firmly in third spot by market cap, with US$185.3 billion (AU$284.1 billion) and a current trading price of US$3.12 (AU$4.78). The coin is down around 3.4% over the past 24 hours and 12% over the past week, though remains up 43% over the past month and 417% over the past 12 months.