XRP holders have a new reason to smile after the SEC granted Ripple a critical waiver that could remove one of the last major roadblocks from its long-running legal fight with the regulator.
Notably, the waiver, which came as both Ripple and the U.S. SEC filed to drop their appeals, means the company can continue raising capital through certain private offerings without facing restrictions that would normally apply because of the standing court injunction.
XRP Investors Could Feel Happier: Grok Explains
As the public caught this new development, spotlighted by attorney John Deaton’s Crypto Law, market commentator CryptoInsightUK turned to xAI’s chatbot, Grok, to discuss what it means in simple terms.
I asked grok to simply explain what the below post means and this is what we got:
1. **What Happened**: The U.S. government (SEC) had rules that stopped Ripple from doing certain things with money because of a lawsuit. The lawsuit said XRP might be an illegal type of investment.… https://t.co/YWNRJYVvMc
— Cryptoinsightuk (@Cryptoinsightuk) August 8, 2025
Grok explained that the SEC had rules in place limiting what Ripple could do with money following its lawsuit over XRP. According to the chatbot, the SEC’s latest action is like handing Ripple a “get out of jail free” card, allowing the company to raise money more easily.
Grok also noted that such positive news could boost investor confidence and possibly lift XRP’s price. It suggested that this signals a friendlier shift in the U.S. government’s approach to crypto, especially after new laws for stablecoins took effect in July 2025.
Significance of the New SEC Waiver
Notably, the waiver is particularly important. Normally, companies under certain SEC injunctions are disqualified from exemptions under Regulation D of the Securities Act, which lets them raise funds from accredited investors without going through full SEC registration.
Ripple’s permanent injunction, issued last year, would have triggered that disqualification. However, the SEC decided there was “good cause” to let Ripple keep using these exemptions, effectively removing the most damaging consequence of the injunction while leaving it on paper.
In practice, Ripple can now operate almost as if the restriction never existed when it comes to private fundraising. The SEC took this route after Judge Analisa Torres failed to vacate the injunction on the regulator’s demand.
For XRP investors, this matters because it restores Ripple’s ability to bring in new funding for business growth and expansion without cumbersome legal barriers. More importantly, it clears away the shadow from the legal battle that has weighed on the token’s long-term outlook.
In the past, XRP’s price has reacted sharply to positive case developments, with double-digit percentage gains in short bursts, and Grok believes the latest development could trigger similar market optimism.
Ripple vs SEC Comes to a Decisive Close
Notably, this moment marks the official close of a nearly five-year court saga. Recall that in July 2023, Judge Analisa Torres ruled that XRP sales on public exchanges to retail buyers did not break securities laws, but institutional sales did.
She ordered Ripple to pay a $125 million fine, far less than the SEC’s $2 billion demand, and imposed a permanent injunction on institutional sales.
Both sides appealed, and in 2025, the SEC’s new leadership and Ripple jointly sought to have the injunction lifted and the fine reduced to $50 million. Judge Torres refused, and after more failed talks, both parties have now agreed to drop their appeals, ending the case for good. Now, with the waiver in place, Ripple can move forward with more freedom.
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