The long-standing legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission has come to a close, signaling an important development in the cryptocurrency sector.
Background of the Case
The lawsuit began in December 2020 when the SEC filed against Ripple and its executives, alleging that XRP sales constituted unregistered securities offerings. Ripple rejected these claims, asserting that XRP is a digital currency, not a security.
Outcome of the Legal Proceedings
On August 7, 2025, both parties announced their joint dismissal of appeals in the Second Circuit Court of Appeals. Judge Analisa Torres' July 2023 ruling stated that XRP is not a security when sold to the public. Ripple will pay a reduced penalty of $50 million, down from the initially ordered $125 million. An injunction against Ripple will remain in effect.
Market Reaction and Future of XRP
Following the announcement, XRP's price surged over 4% to around $3.36 and analysts view the ruling as a positive indicator for potential approval of a spot XRP exchange-traded fund (ETF). Ripple's Chief Legal Officer, Stuart Alderoty, declared this moment as 'the end' and indicated a return to normal business operations. The closure of the case is seen as a significant victory for a crypto firm in U.S. history.
The conclusion of the Ripple and SEC lawsuit is set to impact the entire cryptocurrency industry, creating new opportunities for Ripple and XRP while also heightening investor interest.
