Ripple’s $50M Settlement: Trump’s Crypto Love Affair Pays Off!

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In a twist that would make even the most seasoned soap opera writer blush, XRP has emerged as the belle of the crypto ball, according to Ripple CEO Brad Garlinghouse. 🎭

This rally comes hot on the heels of Ripple agreeing to part with a cool $50 million to the U.S. Securities and Exchange Commission (SEC) as part of a settlement. Because nothing says “we’re sorry” like a hefty check. 💸

Recall, if you will, the SEC’s dramatic lawsuit against Ripple in December 2020, accusing it of selling XRP as an unregistered security. The legal tussle became the crypto world’s equivalent of a Netflix binge-watch. 🍿

In a 2023 ruling that had everyone on the edge of their seats, the court handed Ripple a partial victory: institutional sales were kosher, but public exchange sales were a no-go. 🎢

Ripple had initially set aside $125 million in escrow for potential penalties. But, in a move that would make Scrooge McDuck proud, Garlinghouse announced they’re taking most of it back, including the interest. “It’s just evidence that the former [Gary] Gensler SEC was on the wrong side of the law,” he quipped in a Fox Business interview. “And thanks to the new leadership at the SEC and in the White House.” 🦆

Like other crypto companies (looking at you, Coinbase, Gemini, Uniswap), Ripple benefited from cozying up to President Donald Trump. Last year, the company reportedly donated millions to his campaign and at least $5 million in XRP tokens to his inauguration. Because nothing says “bipartisan support” like a crypto donation. 🎉

The Trump administration’s SEC promptly dropped numerous lawsuits and investigations against crypto companies as a thank-you. While Trump allies claim this shows a willingness to create a more transparent regulatory framework, critics argue it’s just crypto-crony capitalism. 🏛️

Ripple Expands as Regulations Ease

With the regulatory cloud lifting, Ripple is spreading its wings. The company recently completed its largest acquisition to date, purchasing prime broker Hidden Road for $1.25 billion. 🚀

Garlinghouse emphasized that such a move “would have made no sense a year ago” under what he perceived to be a hostile regulatory environment under former SEC chair Gary Gensler. “This allows even larger institutions like BlackRock, like the biggest Wall Street financial institutions, to come into this market in a way they understand with a safer prime broker to help clear transactions and a bigger balance sheet to do that,” he explained. 🏦

The Hidden Road acquisition brings Ripple’s employee count to approximately 1,100 people, with Garlinghouse noting that for years, the company was forced to focus on hiring outside the United States due to regulatory uncertainty. “As a U.S. citizen, I grew up in Kansas. I’d like to hire people here. We have some of the best talent in the world here. But it made no sense to invest in a market where we couldn’t sign customers,” he said. 🌽

Ripple has recently increased its product offerings by launching a stablecoin with a New York trust license from the New York Department of Financial Services. 🏙️

Looking ahead, Garlinghouse expects regulatory clarity to continue improving in two key areas: stablecoin legislation and market structure bills. He expressed confidence that federal stablecoin legislation would move forward “sooner rather than later.” 🕰️

When asked about Bitcoin (BTC) price predictions, Garlinghouse suggested that $200,000 by year-end was “not unreasonable.” He mentioned that it is slightly higher than his previous forecast of $175,000. He attributed his bullish outlook to the shift in the U.S. regulatory approach: “People underestimate how the largest economy in the world, the U.S., went from headwinds, hostility to tailwinds.” 🌬️

XRP has been on an upward trajectory over the past year. A rally occurred following Donald Trump’s re-election in November. See below. 📈

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2025-04-12 16:41