XRP News Today: Ripple Ends Legal Battle With SEC, Accepts $125 Million Penalty, XRP Rises 5%

Ripple Labs has officially concluded its legal battle with the U.S. Securities and Exchange Commission (SEC) by withdrawing its cross-appeal. This decision marks the end of a nearly five-year legal standoff that has significantly impacted the cryptocurrency market. The court's refusal to alter the original judgment, which included a $125 million civil penalty and a permanent ban on Ripple's institutional XRP sales, left both parties with the choice to either proceed with appeals or accept the final ruling. Ripple chose the latter, signaling its readiness to move forward and focus on building the Internet of Value.

The legal battle began in December 2020 when the SEC sued Ripple, accusing the company of raising $1.3 billion through unregistered sales of XRP. Ripple countered by arguing that XRP is a digital asset, not a security. In July 2023, Judge Analisa Torres ruled that XRP is not a security in and of itself but found Ripple guilty of securities violations in its institutional sales, resulting in a $125 million penalty. The SEC filed an appeal in January 2025, aiming to reverse parts of the earlier decision, and Ripple also filed a cross-appeal. In May, both sides proposed a tentative $50 million settlement following new SEC leadership. However, the judge rejected their request, leaving the original penalties in place.

Ripple's decision to withdraw its cross-appeal comes just a day after Judge Torres rejected a joint request from Ripple and the SEC to lower the fine and lift the ban on institutional XRP sales. The judge stated that the parties had not provided sufficient reasons to alter the original judgment. This rejection prompted Ripple to accept the final ruling, effectively ending the legal battle. The SEC is expected to follow suit by withdrawing its appeal, marking the official end of the case.

The conclusion of this legal battle brings clarity to XRP's status as a digital asset, not a security, in the open market. This ruling is significant as it allows Ripple to continue its operations without the legal overhang that has plagued the company for years. The $125 million penalty and the permanent injunction on Ripple's institutional XRP sales remain in place, but the company can now focus on expanding its services and partnerships.

Ripple's withdrawal of its cross-appeal marks the end of its legal dispute with the SEC that began in December 2020. Brad Garlinghouse shared on X that closing this chapter allows Ripple to focus on the "Internet of Value". Stuart Alderoty and Bill Morgan provided legal perspectives, asserting that XRP is not a security in the context of public sales, though some institutional sales differ. The financial impact includes Ripple agreeing to a $125 million penalty, and the cryptocurrency experienced a 5% rise following the resolution announcement. Market analysts forecast increased liquidity and potential growth in XRP-related DeFi activities as regulatory uncertainty decreases.

The end of the legal battle is expected to have a positive impact on XRP's price and market sentiment. With the legal uncertainty resolved, financial institutions may be more inclined to partner with Ripple, and the chances of a spot XRP ETF entering the U.S. market have increased. Additionally, stronger developer interest in the XRP Ledger could add long-term utility and support for XRP's value. The legal clarity provided by the court's decision is likely to act as a strong catalyst for XRP's growth, potentially leading to a price rally in the coming weeks or months.

Potential benefits include a pathway for XRP ETFs, potentially increasing institutional adoption. Historical SEC actions show similar cases often end in settlements or operational adjustments, but Ripple's outcome might influence future token sale classifications, affecting broader industry practices. The conclusion of Ripple's legal case might pave the way for spot XRP ETFs, influencing regulatory strategies for digital assets. The judicial decision favoring Ripple regarding programmatic sales could set precedents, prompting increased trading volumes and bolstered Total Value Locked in DeFi projects involving XRP.