Ripple and SEC End Landmark XRP Lawsuit, Dropping Appeals

In a pivotal moment for cryptocurrency regulation, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have mutually dismissed their appeals, concluding a high-profile legal battle that began in December 2020. The SEC alleged Ripple’s XRP token sales were an unregistered securities offering, while Ripple argued XRP was a digital currency, not a security. This resolution, finalized on August 7, 2025, marks a turning point for XRP and the crypto industry.

A 2023 ruling by Judge Analisa Torres found that Ripple’s programmatic XRP sales on public exchanges did not violate securities laws, but institutional sales did, resulting in a $125 million penalty and an injunction against future unregistered institutional sales. Both parties initially appealed, but a joint filing in the Second Circuit Court of Appeals ended these efforts, with each covering their own legal costs. The decision leaves Torres’ ruling intact, setting a precedent for crypto regulation.

The settlement sparked a 10.6% surge in XRP’s price to $3.31, with trading volume spiking 140% to $9.54 billion, reflecting investor optimism. Industry analysts view this as a partial victory for Ripple, clarifying XRP’s status in retail markets and potentially boosting its adoption in payment systems and ETFs.

Ripple now aims to expand its global payment network, leveraging XRP and its stablecoin, RLUSD. The resolution may signal a shift in SEC enforcement under a crypto-friendly administration, influencing future regulatory approaches. “This closes a chapter for Ripple, but the broader crypto regulation debate continues,” noted a blockchain policy expert. The case’s outcome could shape how digital assets are classified, offering clarity for investors and innovators alike.