XRP News Today: Ripple Ends 4-Year SEC Legal Battle Pays 50 Million Fine XRP Jumps 13%

Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) have reached a definitive resolution in their four-year legal battle over the classification of XRP as a security. On August 7, 2025, both parties withdrew their remaining appeals, bringing the case to a close and eliminating a major legal hurdle for the company [1]. As part of the settlement, Ripple agreed to pay a $50 million fine, half of the original $125 million penalty, while the SEC dropped its appeal of a 2023 court ruling that found public sales of XRP not to be securities [1]. The resolution provides clear regulatory guidance and removes uncertainty surrounding the token’s status.

The legal outcome triggered a sharp market reaction, with XRP surging over 13% within 24 hours, reaching $3.36 [1]. The price increase reflects investor optimism about the potential for a spot XRP exchange-traded fund (ETF). According to Bloomberg ETF analyst Eric Balchunas, the likelihood of such an ETF receiving approval has risen to 95% in 2025 [1]. Institutional interest in XRP has also grown, with a noticeable increase in derivatives and options trading activity, reinforcing the token’s upward trajectory [2].

Ripple’s Chief Legal Officer, Stuart Alderoty, stated the resolution marks the “end… and now back to business,” highlighting the company’s return to its core strategic focus [1]. The case originated in December 2020, when the SEC accused Ripple and its executives of conducting an unregistered securities offering by selling XRP. Ripple consistently argued that XRP is a digital currency and not a security. The 2023 ruling by U.S. District Judge Analisa Torres largely supported this position, though the company was held partially liable for violations related to direct institutional sales [1].

The case has been seen as a critical test of how U.S. courts interpret digital tokens under securities law. With the appeals withdrawn, the 2023 court decision now stands as a key legal precedent that could influence future cases involving other crypto assets. Analysts and investors are closely monitoring whether this outcome will contribute to broader regulatory clarity and encourage institutional adoption of XRP and similar tokens [1].

The settlement also aligns with the SEC’s broader enforcement shift under the current administration. Since the return of Donald Trump to the White House, the agency has scaled back several crypto-related cases, dismissing over a dozen ongoing investigations [1]. Ripple’s legal victory, combined with the SEC’s more measured approach, could signal a turning point in the U.S. regulatory landscape for digital assets.

XRP reached a two-week high of $3.36 in the aftermath of the settlement [3], outperforming Bitcoin and Ethereum in the short term. The surge in institutional options trading activity suggests growing market confidence in the token’s long-term prospects [4]. The price had previously risen to $3.30 as the legal case neared resolution [5], and it briefly hit $3.6606 earlier in August amid expectations of a swift conclusion [6]. The market clearly views XRP as a direct beneficiary of the legal resolution.

Source:

[1] [XRP Lawsuit Officially Ends After Ripple, SEC Drop Appeals](https://www.cryptotimes.io/2025/08/08/xrp-lawsuit-officially-ends-after-ripple-sec-drop-appeals/)

[2] [XRP jumps 13 to 3.36 as derivatives surge and SEC case ...](https://www.ainvest.com/news/xrp-news-today-xrp-jumps-13-3-36-derivatives-surge-sec-case-ends-2508/)

[3] [XRP Surges 13% in 24 Hours to $3.36, Hits Two-Week High](https://www.cryptotimes.io/2025/08/08/xrp-surges-13-in-24-hours-to-3-36-hits-two-week-high/)

[4] [XRP Lawsuit Officially Ends After Ripple, SEC Drop Appeals](https://www.ainvest.com/news/xrp-news-today-ripple-sec-drop-appeals-year-xrp-legal-battle-2508/)

[5] [The Smarter Web Company Boosts Bitcoin Holdings](https://m.economictimes.com/crypto-news-today-live-08-aug-2025/liveblog/12317392.cms)

[6] [Ripple dropped its cross-appeal, lifting XRP to a July high ...](https://m.facebook.com/manuel.guevarra.369210/photos/ripple-dropped-its-cross-appeal-lifting-xrp-to-a-july-high-of-36606-amid-hopes-f/739044969008714/)