XRP News Today: U.S. Court Confirms XRP Not a Security in Final Ripple-SEC Ruling

The U.S. Court of Appeals for the Second Circuit has officially closed the long-standing legal dispute between Ripple Labs Inc. and the Securities and Exchange Commission (SEC) by dismissing all pending appeals [1]. This marks a definitive resolution in a case that had spanned over five years. The court’s decision confirms that XRP, Ripple’s native cryptocurrency, does not qualify as a security in secondary market trading, thereby solidifying its legal status under current U.S. regulatory frameworks [3].

The ruling came after Ripple and the SEC jointly filed a motion to dismiss their respective appeals, a move that was subsequently approved by the court [2]. This agreement signals a mutual recognition that the legal battle has reached an appropriate conclusion, allowing both parties to shift focus away from litigation and toward compliance and market operations. The dismissal was finalized in early August 2025, with court documents indicating that the case was closed without prejudice [1].

The case had previously drawn widespread attention due to its significance in setting a precedent for how cryptocurrencies should be classified under U.S. securities law. Ripple had consistently argued that XRP should not be treated as a security, a stance that the court’s decision now supports [3]. District Judge Analisa Torres previously ruled that XRP sales on public exchanges to retail investors did not constitute securities transactions, while direct sales to institutional buyers did. This split judgment established a legal precedent that may shape how courts interpret the classification of digital tokens in future enforcement actions.

Subsequent to the initial district court ruling, the court imposed a civil monetary penalty of $125 million on Ripple—a substantial reduction from the $2 billion sought by the SEC. Ripple and the SEC then reached a resolution but their joint settlement motion was rejected by the court, which maintained the integrity of its judgment. With no viable path to alter the outcome through continued litigation, both sides elected to withdraw their appeals, finalizing the ruling and the associated penalty without further modification.

The implications of the ruling have already begun to manifest in market behavior. Following the confirmation of the case closure, XRP experienced a short-lived price surge, with reports noting a 9% increase before a subsequent pullback capped the rally near the $3 level [5]. Analysts have pointed to the legal clarity as a potential catalyst for increased institutional adoption and broader acceptance of XRP in the digital asset ecosystem [4]. Institutional sales teams have reportedly started incorporating XRP into their offerings, viewing it as a viable and now more legally defined asset [4].

Industry observers note that the resolution of the Ripple-SEC case does not mark the end of regulatory scrutiny in the crypto space. However, it does represent a pivotal shift in the evolving relationship between traditional financial regulators and blockchain technology. The outcome may also encourage greater innovation in the sector, as companies seek to operate within a more defined legal landscape.

The decision has also been interpreted as a sign that the SEC and the judiciary are moving toward a more pragmatic approach to digital assets, balancing investor protection with the need for market innovation [3]. While the ruling does not constitute an endorsement of all aspects of Ripple’s business model, it does affirm the company’s right to operate XRP on a public exchange without the burden of being classified as a security in its secondary transactions.

The broader crypto market has reacted with a mix of optimism and caution. While some see the closure of the case as a positive step toward legal clarity and market stability, others remain cautious about how this will translate into broader regulatory action across the industry [6]. The ruling does not preclude the SEC from taking action in other cases or against different tokens, but it does set a benchmark that regulators and market participants will likely reference in future discussions.

With the legal uncertainty now resolved, the focus for Ripple and XRP holders is expected to shift to market performance and adoption. The token has already seen a return to the $3 level and has broken into the top 100 assets by market capitalization, according to recent data [4]. As the crypto industry continues to mature, the Ripple-SEC case will likely be remembered as one of the most influential legal battles in the history of digital assets [1].

Source:

[1] https://news.bitcoin.com/court-confirms-ripple-v-sec-case-closure-locking-in-xrps-legal-status/

[2] https://www.reddit.com/r/CryptoCurrency/comments/1mxhwvd/court_approves_joint_ripple_secs_motion_to/

[3] https://www.mitrade.com/insights/news/live-news/article-3-1063707-20250823

[4] https://www.ainvest.com/news/crypto-treasury-play-xrp-overlooked-opportunity-2508/

[5] https://public.com/crypto/xrp/news

[6] https://thecryptobasic.com/tag/ripple/