Ripple settles with regulators, price rallies: CEO thanks Trump

**XRP Leads Crypto Market as Ripple Settles With SEC and Expands Under Favorable Regulatory Climate**

XRP has emerged as the best-performing major cryptocurrency over the past 90 days, according to Ripple CEO Brad Garlinghouse. This surge in momentum coincides with Ripple’s recent $50 million settlement with the U.S. Securities and Exchange Commission (SEC), marking a significant development in the company’s long-standing legal battle.

### Ripple Closes the Chapter on SEC Lawsuit

The SEC first filed a lawsuit against Ripple in December 2020, alleging that the company had conducted an unregistered securities offering through its sales of XRP. The case quickly became one of the most high-profile legal disputes in the cryptocurrency sector, as its outcome had implications for the broader digital asset market.

In a pivotal 2023 ruling, the court delivered a mixed verdict. It determined that Ripple’s institutional sales of XRP were legally compliant, but sales on public crypto exchanges had indeed violated securities laws. Following the ruling, Ripple had placed $125 million in escrow to prepare for potential penalties.

However, in a recent interview with Fox Business, Garlinghouse revealed that Ripple would reclaim a substantial portion of that amount, including accrued interest. “We’re actually taking most of that back, including the interest that had been earned along the way,” he said. He also took the opportunity to criticize the SEC under former Chairman Gary Gensler, stating that “the former Gensler SEC was on the wrong side of the law,” and credited the current SEC leadership and new White House administration for a more constructive approach.

### Political Support and Regulatory Shift

Ripple, like other major crypto firms such as Coinbase, Gemini, and Uniswap, appears to have benefited from shifting political winds. Reports indicate that Ripple contributed millions to Donald Trump’s presidential campaign and donated at least $5 million in XRP tokens toward his January 20 inauguration.

Following Trump’s re-election, the SEC, under the new administration, dropped several ongoing lawsuits and investigations into crypto firms. Supporters argue that these actions represent a step toward a clearer, more business-friendly regulatory framework. Critics, however, warn of potential conflicts of interest, labeling the trend as a form of "crypto cronyism."

### Ripple’s Expansion and Strategic Moves

With legal hurdles easing, Ripple is now aggressively expanding its operations. In its most ambitious acquisition to date, the company acquired prime brokerage firm Hidden Road for $1.25 billion. Garlinghouse emphasized that such a move would have been inconceivable a year ago under the prior regulatory environment.

“This allows even larger institutions—like BlackRock and other major Wall Street players—to participate in the crypto market through a prime broker they trust, with a stronger balance sheet and better infrastructure,” he explained.

As a result of the acquisition, Ripple’s workforce has grown to approximately 1,100 employees. Garlinghouse noted that due to the regulatory challenges of the past few years, Ripple was previously forced to focus hiring outside the U.S. “I grew up in Kansas. I want to hire people here. But we couldn't justify investing in a market where we couldn’t sign clients,” he said.

The company has also launched a new stablecoin, issued under a New York trust license, as part of its expanded product suite. This move signals Ripple’s commitment to building compliant financial products in cooperation with regulators.

### Optimism for U.S. Crypto Legislation

Looking forward, Garlinghouse is optimistic about further regulatory clarity, particularly in the areas of stablecoin legislation and market structure reform. He expressed confidence that stablecoin regulations at the federal level would advance “sooner rather than later,” which would be a crucial step in mainstream crypto adoption.

### Bullish Outlook for Bitcoin

When asked about Bitcoin’s prospects, Garlinghouse shared a bullish year-end forecast of $200,000, slightly above his earlier projection of $175,000. He attributed his optimism to the changing regulatory landscape in the U.S.

“People underestimate how significant it is when the world’s largest economy shifts from regulatory headwinds and hostility to tailwinds,” he said.

### Conclusion

Ripple’s recent legal resolution with the SEC, combined with favorable political and regulatory developments, has positioned the company for rapid growth. With XRP leading the crypto market and Ripple doubling down on strategic expansion, the company appears poised to play a central role in the next phase of digital asset innovation.