SEC and Ripple end legal battle, with Judge Torres' 2023 ruling on XRP sales remaining.

SEC and Ripple end legal battle, with Judge Torres' 2023 ruling on XRP sales remaining.

The U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. have officially concluded their legal dispute, ending a years-long battle over the sale of XRP tokens. In a joint filing with the U.S. Court of Appeals for the Second Circuit, both parties agreed to drop their respective appeals, leaving Judge Analisa Torres' 2023 ruling on the matter intact [1].

The SEC and Ripple Labs initially faced off in 2020, with the SEC alleging that Ripple had violated securities laws through the sale of XRP. The case reached a pivotal point in 2023 when Judge Torres ruled that some sales of XRP to institutional investors were unlawful securities sales, while sales on public exchanges were not. This decision was seen as a partial victory for the crypto industry but left Ripple liable for institutional sales [2].

In June 2024, Ripple CEO Brad Garlinghouse announced that the company would drop its cross-appeal, stating that they were "closing this chapter once and for all" and focusing on building the "Internet of Value." The SEC also agreed to bear its own costs and fees, as per the joint stipulation of dismissal [3].

The conclusion of the appeals process means that the 2023 ruling, which included a $125 million civil penalty and a permanent injunction against further violations of the law, remains in place. This ruling is likely to set a precedent for how regulators and courts assess the classification of cryptocurrencies in the future [3].

Following the announcement, the price of XRP rose over 5% to around $3.27, indicating a positive reaction from the market [1]. This increase in price reflects the growing institutional confidence in XRP and the partial regulatory clarity provided by Judge Torres' ruling [4].

The SEC, however, has not withdrawn its appeal, leaving the legal battle in a state of limbo. While the SEC has not set a deadline for withdrawal, it is expected to report to the appeal court by August 15, 2025. This deadline may prompt the agency to take further action in the case [4].

References:
[1] https://www.coindesk.com/policy/2025/08/07/sec-s-long-running-case-against-ripple-officially-over
[2] https://www.tradingview.com/news/the_block:577963b93094b:0-sec-ripple-to-end-legal-battle-as-both-parties-abandon-appeals-leaving-xrp-ruling-intact/
[3] https://finance.yahoo.com/news/sec-ripple-end-appeals-closing-235853898.html
[4] https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=sec-v-ripple-sec-has-just-days-left-to-respond-on-xrp-case-says-legal-expert