The nearly five-year legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has come to a close. On August 22, 2025, the U.S. Court of Appeals for the Second Circuit issued an order approving a joint stipulation of dismissal filed by both parties.
Settlement Outcomes
Ripple has agreed to pay a $125 million penalty to resolve charges regarding its institutional sales of XRP. Notably, the earlier court ruling that XRP is not considered a security when traded in secondary markets remains intact.
Legal Implications
Key legal outcomes from the case include:
* Institutional XRP sales may fall under securities laws. * Retail XRP sales on exchanges are not deemed securities. * SEC appeal has been dropped, signaling no further challenge to XRP's classification. * The case is officially closed, marking the end of nearly five years of litigation.
Market Reaction
Following the announcement, XRP's price surged by 6%, trading above $3.00. Analysts indicate that much of the legal outcome had already been priced in earlier this year. The latest price movement is likely supported by the broader market, with Ethereum recently setting new all-time highs.
The conclusion of the Ripple vs SEC case alleviates years of uncertainty for XRP and may set a precedent impacting future regulatory actions in the crypto industry.
