Ripple and SEC end legal battle over XRP lawsuit, closing a landmark crypto case that may shape future U.S. crypto regulations.
The long-running legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has officially come to an end. In a joint filing to the Second Circuit Court of Appeals, both parties consented to withdraw their appeals. It becomes one of the biggest twists in one of the most high-profile cases in the history of cryptocurrency regulation.
Ripple Closes Chapter on XRP Lawsuit After 5 Years
This court case started in December 2020 with the complaint filed by the SEC against Ripple Labs. The SEC asserted that the sale of the Ripple digital token, XRP, was an unregistered securities offering. Ripple wholeheartedly disagreed on the basis that XRP is not a security but rather a digital asset. This case received a great deal of attention over the years, both within the legal circles and the crypto community.
U.S. District Judge Analisa Torres made a partial ruling in July 2023. According to her conclusion, Ripple breached the securities laws by selling the XRP to institutional investors. Nonetheless, she also declared that the sales of XRP to retail buyers, via exchanges, did not. This ruling was perceived as a half-baked result. Although Ripple was penalized over its institutional sales, the decision brought relief to the general crypto market since it declared that sales of secondary-market XRP were not securities.
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Both the SEC and Ripple appealed after the ruling. The SEC aimed to dispute the decision that went in favor of retail sales by Ripple. In the meantime, Ripple made a cross-appeal in order to protect its arguments. However, in June 2025, the Ripple CEO Brad Garlinghouse stated that the company had decided to abandon its appeal. He said we should now turn the page and concentrate on creating the Internet of Value.
Ripple Case Closure Sparks 10% XRP Surge
Now, both appeals have been formally dropped. In a brief statement, the Second Circuit affirmed the dismissal and indicated that each party will pay its legal fees. Consequently, the ruling made by Judge Torres in 2023 now becomes the ultimate decision.
The consequence implies that Ripple will be fined a civil penalty of 125 million dollars over its institutional sales of XRP. In addition to that, the company is required to adhere to a court injunction so that such a violation does not occur again in the future. Nevertheless, XRP trading on open exchanges is once again possible without legal ambiguity.
Notably, this decision was not made after a conclusive decision by the appellate court. Thus, certain legal issues regarding the categorization of digital assets have not been resolved yet. However, a considerable number of legal observers think that the decision made by Judge Torres will become a precedent in further litigation.
According to CoinMarketCap, the news saw XRP skyrocket in price by 10% to the value of $3.31 within 24 hours. This demonstrates that investors were happy to see the case close, and they viewed it as a good indicator for the market.
There was also the support of legal experts and crypto advocates. Attorney Bill Morgan said the case is finished, and the resolution was the best news in years.
In the future, the ruling in the Ripple case can impact the way regulators in the United States look at other cryptocurrencies. Although the court battle is done, the fallout of the case will most likely influence crypto policy for years to come.
