SBI Holdings Reveals Reasons Holding Back XRP Price

Cryptocurrency researcher SMQKE recently shared an excerpt from an official document released by SBI Holdings, a major financial services company in Japan, mentioning the legal dispute between the Securities and Exchange Commission (SEC) and Ripple Labs. This document, reportedly included in the presentation "2025 Information Meeting" of SBI Holdings on June 2, 2025, provides a detailed timeline of the legal proceedings that have affected the market valuation of XRP over the years. According to the disclosed documents, the SEC filed a lawsuit against Ripple in December 2020, alleging that Ripple conducted unregistered securities offerings by selling XRP tokens to investors. This regulatory action coincided with a significant drop in the price of XRP, recorded at $0.26 (27 JPY) at the time the lawsuit was filed. This document also outlines important milestones in the litigation process. On July 13, 2023, a federal court ruled that XRP does not constitute an investment contract and therefore is not a security, except in cases related to direct sales to institutional investors. This legal interpretation marks a partial victory for Ripple, clarifying that most transactions involving XRP will not be classified as the sale of securities under U.S. law.

Developments in mitigating penalties and resolutions SBI Holdings' presentation also highlighted the ongoing negotiations between the SEC and Ripple regarding financial penalties. Initially, the SEC proposed an estimated fine of about 125 million dollars. However, according to the presentation, on May 8, 2025, Ripple and the SEC reached a settlement agreement and jointly filed a motion in federal court requesting approval of the amended settlement terms. The final penalty was reduced to 50 million. This agreement, as described in the document, represents an important step in removing significant barriers to Ripple's potential initial public offering (IPO). SBI Holdings specifically notes that the prolonged legal uncertainty has become a barrier by "suppressing the price of XRP for a long time." Price movement and market reaction are recorded The image shared by SMQKE includes a price chart showing the fluctuations of XRP from April 2020 to May 2025. After the first lawsuit in December 2021, XRP experienced a prolonged price volatility period and maintained a low valuation. Following the ruling in July 2023 that XRP is not a security for most retail transactions, the price of XRP increased to about $0.81 (112 yen). Subsequently, when the settlement agreement in May 2025 was announced, the price increased further. On May 8, 2025, XRP was trading at $2.31 (337 yen ), reflecting the growing confidence of market participants that the legal issues were about to be resolved. The chart also recorded a similar valuation of $2.31 (329 yen ) on May 26, 2025. Community comments and source verification Another user X, Digital Asset Dude, commented on SMQKE's post to confirm the authenticity of the document. According to Digital Asset Dude, the presentation can be accessed through SBI Holdings' investor relations website and appears on page 126 in the Ripple investment section. The timeline and price chart displayed in the image match exactly with the official document. Some market observers have used this confirmation to bolster the credibility of the claims made, particularly asserting that the SEC's dispute has impacted the valuation of XRP and slowed Ripple's IPO ambitions.