XRP News Today: Regulatory Clarity for XRP Paves New Path for Crypto Innovation

The U.S. Court of Appeals for the Second Circuit has officially approved the joint stipulation to dismiss the appeals in the long-running legal dispute between Ripple Labs and the Securities and Exchange Commission (SEC), marking a significant milestone in the regulatory classification of the XRP token. The dismissal, confirmed by defense attorney James Filan on August 22, 2025, concludes the appellate proceedings and shifts the case to final enforcement at the district court level [1]. The legal battle, which began in December 2020 with the SEC’s lawsuit over alleged unregistered securities sales of XRP, has now reached a definitive resolution following years of litigation [2].

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The ruling by Judge Analisa Torres in July 2023, which determined that XRP traded on exchanges is not a security, has now been made final and unappealable. This decision clarifies that while XRP itself is not classified as a security under federal law, direct sales of the token to institutional investors would still require registration with the SEC. Ripple was fined $125 million, a fraction of the $2 billion initially sought by the SEC, and the settlement marks a compromise between the two parties. The outcome has sparked renewed interest in the potential for XRP-based financial products [2].

Following the resolution, several major asset management firms, including Grayscale, Bitwise, Canary, CoinShares, Franklin, 21Shares, and WisdomTree, have updated their applications with the SEC for the launch of spot XRP exchange-traded funds (ETFs). These updates are widely seen as a response to regulatory feedback and a sign of growing confidence in the token’s compliance with existing securities laws [2]. Analysts have noted that the timing of these submissions suggests a strategic alignment with recent legal developments and the potential for increased regulatory clarity.

Market reactions to the court’s decision have been largely positive. XRP has risen nearly 7% in the past day, buoyed by broader market optimism stemming from Federal Reserve Chair Jerome Powell’s recent comments on interest rate policy. The token remains above the $3 mark, and some analysts have expressed a bullish outlook for its price trajectory in the coming months. Despite a dip in the probability of XRP ETF approval on the Polymarket prediction platform—from over 98% in June to 65% in August—Bloomberg analysts remain confident, estimating a 95% chance of regulatory approval by October [2]. The outcome of this case could influence the development of a broader regulatory framework for digital assets in the U.S.

The resolution of the Ripple-SEC case could also set a precedent for how other tokens are evaluated under U.S. securities law. With a clear distinction drawn between XRP traded on exchanges and its use in private institutional sales, regulators and market participants now have a more defined framework to assess token offerings. This could ease the path for future token projects seeking compliance, particularly those with a primary focus on decentralized exchange trading. The ripple effects—both legal and market—of this ruling are expected to persist as the crypto industry continues its push for institutional legitimacy and regulatory clarity.

Source:

[1] Court approves Ripple, SEC's motion to dismiss appeal in ... (https://cryptobriefing.com/ripple-sec-settlement-xrp-enforcement/)

[2] US Court Finalizes SEC's Case Closure Against Ripple (https://forklog.com/en/us-court-finalizes-secs-case-closure-against-ripple/)