A recent document by SBI Holdings sheds light on the situation surrounding XRP's price and the ongoing legal dispute with the SEC that has negatively impacted the cryptocurrency market.
Legal Dispute and Its Impact
Crypto researcher SMQKE recently shared an excerpt from an official document published by SBI Holdings regarding the legal dispute between the SEC and Ripple Labs. The document indicates that the SEC filed a lawsuit against Ripple in December 2020, claiming that Ripple conducted unregistered securities offerings by selling XRP tokens. This regulatory action coincided with a significant decline in XRP’s price, which was recorded at USD 0.26 (JPY 27) when the lawsuit was filed. An important event in the litigation process was a federal court ruling on July 13, 2023, which clarified that XRP does not constitute an investment contract, except in cases of direct sales to institutional investors.
Penalty Reduction Agreement
SBI Holdings' presentation also discusses subsequent negotiations between the SEC and Ripple regarding financial penalties. Initially, the SEC sought a penalty estimated at approximately $125 million. However, on May 8, 2025, Ripple and the SEC reached a settlement agreement that resulted in the penalty being reduced to USD 50 million. This agreement is seen as an important development that has removed a significant obstacle to Ripple's prospective initial public offering (IPO).
Market Activity and Public Reaction
The document includes a price chart showing XRP's fluctuations between April 2020 and May 2025. Following the court ruling in July 2023 that declared XRP was not a security for most retail transactions, XRP's price rose to approximately $0.81 (JPY 112). After the May 2025 settlement became public, the price rose further to $2.31 (JPY 337), indicating growing confidence among market participants that the legal issues were nearing resolution. User Digital Asset Dude confirmed the authenticity of the document, stating it is available on SBI Holdings' investor relations website.
The SBI Holdings document underscores the significance of resolving the legal dispute in improving XRP's market standing and may further influence the token's price in the future.
