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Ripple CEO reveals 2020 plan to dissolve company and distribute XRP, a move that shaped the token’s legal battle and future prospects.
Ripple almost dissolved in 2020, planning to give all its XRP to shareholders before deciding to fight the SEC lawsuit that had driven the token’s price to near‑zero levels【1】. The revelation underscores the high‑stakes legal fight that cost the firm roughly $150 million in fees and ultimately led to a court ruling that XRP is not a security【2】.
| At a glance | |
|---|---|
| Price | $1.10 |
| 24‑h change | –1.28 % |
| Catalyst | SEC lawsuit and contemplated shutdown |
| Milestone | XRP now on Kansas Jayhawks jerseys |
In December 2020, the SEC sued Ripple, alleging the sale of XRP as an unregistered security. Major U.S. exchanges delisted the token, and its price collapsed, prompting warnings that holders should sell before the token “went to zero.” Within days of the filing, Ripple’s leadership considered winding the company down and distributing its entire XRP holdings to shareholders—a strategy that would have left the SEC with nothing to pursue【1】. The plan was ultimately rejected, largely because the company employed hundreds of staff and the leadership deemed the loss of those jobs “the easier outcome, but a bad one”【1】.
Ripple chose to contest the case, spending about $150 million on legal fees over four years【2】. In 2023, a federal judge ruled that XRP itself is not a security, sparking a brief intraday rally of up to 96 % before settling lower【1】. By 2025, the SEC settled the dispute, with Ripple paying roughly $50 million of the $125 million penalty originally sought【1】. The ruling cleared a major regulatory cloud, allowing institutions to reconsider XRP and paving the way for the token’s historic appearance on the Kansas Jayhawks’ uniforms—a first for any cryptocurrency on a major U.S. college jersey【1】.
Ripple’s near‑shutdown episode highlights how legal risk can dictate corporate strategy in crypto. While the token has recovered enough to earn a spot on a college jersey, its future hinges on regulatory clarity and Ripple’s ability to embed itself in the U.S. financial system.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jul 12, 2026 · How we report
FX Empire forecasts a possible correction of up to 40%, targeting a price near $0.68 from current levels around $1.10.
AOL suggests that if the CLARITY Act passes, it could lock XRP’s commodity status, potentially enabling $3‑$5 price levels or higher if institutional demand materialises.
XRP is trading below its 20‑, 50‑, and 200‑day exponential moving averages, with a three‑day RSI near 39, indicating bearish momentum.
ETF holdings of XRP total approximately $1.48 billion, according to AOL.
AOL notes that RLUSD’s growth may divert usage away from XRP for payments, as banks prefer a stablecoin for cross‑border transfers.