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- Ripple and SEC end their legal battle, locking in the 2023 ruling that limits XRP’s securities classification and imposes a $125M fine.
- XRP price surges 10% after case dismissal, reflecting boosted investor confidence and strong long-term holder support.
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have formally concluded their legal battle after both parties agreed to dismiss their appeals. The Second Circuit Court of Appeals recognized the joint filing, confirming that each side will cover its own legal costs.
The SEC initially sued Ripple in December 2020, accusing the company of selling XRP as an unregistered security. That case escalated over nearly five years, becoming a key dispute in the broader debate over crypto regulation in the United States.
🚨JUST IN: A joint dismissal of appeals has been filed by the @SECGov and @Ripple, officially bringing their nearly five-year legal saga to a close. https://t.co/Zay9ct6DSL
— Eleanor Terrett (@EleanorTerrett) August 7, 2025
The recent dismissal follows a Commission vote and comes after Ripple and the SEC paused their appeals in April. By abandoning the appellate process, both sides effectively locked in Judge Analisa Torres’s July 2023 decision.
Judge Torres’ Ruling Becomes Permanent
The federal court’s decision now stands as the final judgment in the case. Judge Torres ruled that XRP sales on public exchanges do not qualify as securities transactions. However, she determined that XRP’s selling directly to institutional investors violated securities laws.
Ripple was ordered to pay a $125 million penalty, far below the SEC’s original request of $2 billion. That ruling led the SEC to appeal, with Ripple filing a cross-appeal shortly after. Both actions have now been withdrawn.
The SEC’s attempt to reduce the fine and dissolve an injunction against Ripple was denied in June. Judge Torres stated that the company must continue complying with existing securities laws, regardless of any regulatory shifts within the Commission.
The SEC’s decision to drop the case follows broader shifts in crypto policy under Donald Trump’s current administration. Trump has signaled a rollback of enforcement actions in the digital asset space, which may explain why the agency has also abandoned other lawsuits in recent months.
The agency’s lawsuit against Ripple began under former SEC Chair Jay Clayton during Trump’s first term. The case soon became a focal point in the legal interpretation of whether digital tokens should be classified as securities.
Ripple maintained throughout the litigation that XRP is a digital currency, not an investment contract. The company also accused the SEC of failing to give fair notice before filing charges.
Stuart Alderoty, Ripple’s chief legal officer, confirmed the case’s closure in a statement on X. “Following the Commission’s vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals,” he wrote. “The end… and now back to business.”
Ripple had hinted earlier this year that both parties would move to end the appeals. A settlement was reportedly reached in May, leading to a formal request to pause proceedings and eventually to the final dismissal on August 8.
XRP Price Rises as Settlement Boosts Confidence
Following confirmation of the dismissal, XRP rallied over 10% in a single day to $3.31. It had already gained nearly 99% since April, hitting a peak of $3.56 in July. Market analysts attribute the rise to increased investor confidence following the resolution of the case.
Data from Glassnode shows that over 80% of XRP’s supply is held in dormant wallets. Long-term holders remain profitable, while short-term traders have started reaccumulating in anticipation of another price surge.
