SEC and Ripple Settle Four-Year Legal Battle, XRP Classified as Non-Security for Secondary Trading.

Ripple and the SEC have concluded their four-year legal battle, with the US Second Circuit Court dismissing both parties' appeals. XRP has been approved for secondary market trading, and Ripple has been fined $125 million for unregistered sales. The ruling clarifies digital asset regulatory frameworks and sets a precedent for future institutional sales compliance.

The long-running legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) has finally come to an end. The U.S. Court of Appeals for the Second Circuit approved a joint stipulation dismissing both parties' appeals, effectively ending the legal saga that began in December 2020 [1].

The dismissal of the appeals marks a significant milestone in the regulatory landscape for digital assets. The case initially began when the SEC sued Ripple Labs, alleging that the company conducted an unregistered securities offering through the sale of XRP tokens. Ripple countered by asserting that XRP is a digital currency and not a security [1].

The dismissal follows months of settlement discussions between Ripple and the SEC, which led to a joint filing on August 7, 2025. Under the settlement terms, XRP will not be classified as a security, representing a major victory for Ripple. Each side will cover its own legal costs [2].

The resolution has had immediate market effects. XRP's price rose to $3.08 following the court's decision, reflecting investor optimism. The resolution also catalyzed a surge in updated XRP ETF filings, with seven asset managers—Canary, CoinShares, Franklin Templeton, 21Shares, WisdomTree, Grayscale, and Bitwise—submitting revised registration statements within hours of the ruling [3].

The Ripple case has broader implications for the cryptocurrency industry. The litigation underscored the need for clear regulatory frameworks, as the lack of consistent rules led to prolonged uncertainty for market participants. Ripple's legal victory, combined with the SEC's recent shift toward a more collaborative approach, may signal a new direction for crypto regulation in the U.S. [3].

In conclusion, the dismissal of the Ripple-SEC case represents a pivotal moment in the evolution of cryptocurrency regulation. While the legal battle is over, the $125 million fine and injunction remain in place. The resolution provides much-needed clarity for the industry and sets the stage for more structured engagement between regulators and digital asset firms [4].

References:
[1] https://cryptobriefing.com/ripple-sec-settlement-xrp-enforcement/
[2] https://cryptoslate.com/second-circuit-court-officially-dismisses-ripple-sec-appeals-ending-four-year-legal-battle/
[3] https://www.ainvest.com/news/xrp-news-today-landmark-win-clarity-crypto-regulation-2508/
[4] https://www.mitrade.com/insights/news/live-news/article-3-1063003-20250823