After a protracted legal battle, it looks like Ripple and the US Securities and Exchange Commission (SEC) are finally approaching the finish line.

But here’s a twist: emerging from settlement discussions is the intriguing possibility that Ripple might settle its reduced $50 million penalty by using its own cryptocurrency, XRP.

Ripple Could Use XRP Token to Pay SEC Fine

In a recent FOX Business interview on April 11th, Ripple CEO Brad Garlinghouse dropped an interesting tidbit. He mentioned that the idea of settling the penalty in XRP had actually been discussed during settlement negotiations.

“The way it looks, the SEC will receive $50 million, the US government will get $50 million, and we’ve actually discussed the possibility of making that payment in XRP,” Garlinghouse stated.

These settlement talks gained momentum after both Ripple and the SEC decided to drop their appeals – a move that signifies the nearing conclusion of this years-long legal saga.

“It feels like we’re turning the page on the SEC’s broadsides against crypto and heading into an exciting new chapter for the market – one where we’ll see real institutional money flowing into decentralized finance,” Garlinghouse added in a post on X.

Back in 2024, Judge Analisa Torres initially slapped Ripple with a $125 million penalty because of unregistered XRP sales to institutional investors. Ripple, in compliance, promptly deposited the funds in an interest-bearing account. However, the appeals process put everything on hold.

Now, with the appeals dropped, Ripple anticipates paying a significantly lower fine of $50 million.

A recent joint court filing confirms that both parties have actually reached a preliminary agreement. The next step is to get the thumbs-up from the SEC commissioners.

After these internal reviews are wrapped up, both sides are expected to jointly ask the district court for a formal ruling.

“There’s a solid reason for our joint request to put these appeals on hold. We’ve reached an agreement in principle – pending Commission approval – to settle the core case, the Commission’s appeal, and Ripple’s counter-appeal. We need a bit more time to secure Commission approval for this agreement. If the Commission approves, we’ll then seek a preliminary ruling from the district court,” the court filing stated.

Should the commission give it the green light, this settlement could wrap up one of the most closely followed regulatory showdowns in the crypto world. Even more significantly, if XRP is used for the payment, it could signal a notable evolution in the SEC’s stance on digital assets.

This potential shift could represent a major change in regulatory attitude and might just fuel even more positive vibes around the token.

Interestingly, since Donald Trump’s election win in November 2024, we’ve seen a surge in investor confidence in XRP, driving its value up by over 300%.

Simultaneously, institutional interest is climbing, evidenced by the growing number of spot exchange-traded fund applications linked to XRP.

Market watchers attribute this surge to the more accommodating political environment. They also highlight the possibility of XRP being reclassified as a commodity as a key booster for its recent gains.