The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has concluded, providing clarity not just for Ripple and XRP but for the broader cryptocurrency industry.
Programmatic Sales Are Not Investment Contracts
A significant moment in the case came in July 2023 when U.S. District Judge Analisa Torres ruled that Ripple's programmatic sales of XRP conducted on public exchanges did not constitute securities transactions. This was a major blow to the SEC's theory and a huge win for Ripple. The court found that purchasers in the secondary market had no reasonable expectation of profits based on Ripple's efforts, which disqualified such transactions under the Howey Test.
XRP Is Not a Security
Judge Torres also ruled that XRP itself is not a security. This ruling was crucial because it established that the token, on its own, is not inherently an investment contract. The SEC's attempt to label all XRP as a security was unequivocally rejected by the court.
Conclusion and Implications for the Crypto Market
On June 27, 2025, Ripple CEO Brad Garlinghouse confirmed that the company would drop its cross-appeal, and the SEC is expected to do the same, finalizing the lawsuit for good. The successful outcome removes a major source of regulatory uncertainty for both XRP and the U.S. crypto market. As a result, XRP responded positively in the markets, gaining 4.26% in 24 hours, reflecting renewed investor confidence.
Ripple's victories on most aspects of the case not only clear XRP's name but also pave a more defined path for future regulation in the crypto industry.
