XRP News Today: Ripple and SEC End 5-Year Legal Battle as Appeals Dropped XRP Price Surges 11%

On August 7, 2025, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs jointly dismissed their appeals before the Second Circuit Court of Appeals, effectively ending a five-year legal battle that began in December 2020. The dispute centered on whether XRP, Ripple’s native cryptocurrency, was classified as a security under U.S. law [1]. The resolution came after a 2023 ruling by U.S. District Judge Analisa Torres, which found that XRP sold to retail investors on public exchanges did not qualify as a security, while XRP sold directly to institutional buyers did [3]. Ripple agreed to pay a $125 million fine related to the latter transactions [2].

The joint dismissal of appeals marks a strategic retreat by both parties. Ripple had already signaled its intent to withdraw its cross-appeal in June 2025 after reaching an agreement with the SEC that included compliance measures and restrictions on future institutional sales [3]. With no further litigation expected, each side will bear its own legal costs [2]. Ripple’s Chief Legal Officer, Stuart Alderoty, noted the conclusion with the statement, “The end…and now back to business” [4].

The case had far-reaching implications for the broader cryptocurrency industry. Judge Torres’s ruling provided a legal distinction between secondary market transactions and direct offerings, a line the SEC had previously resisted drawing. The outcome was widely seen as a victory for Ripple and a significant development in the evolving legal framework for digital assets [1]. It demonstrated that not all token transactions fall under the securities umbrella, particularly in secondary markets where buyers may be anonymous and have no expectation of profits tied to the issuer’s efforts [3].

The resolution also reflects a broader shift in the regulatory landscape. The SEC’s decision to drop its appeals aligns with a more lenient approach under the Trump administration, which has seen the agency withdraw from several other crypto enforcement actions [5]. This change in tone was evident in the market, where XRP’s price surged more than 11% in the days following the announcement [6]. Technical indicators, such as moving averages and the MACD, also suggested a potential upward trend for the cryptocurrency [7].

While the legal dispute is now settled, Ripple remains subject to U.S. securities laws, particularly regarding its institutional sales. The company has not announced any immediate plans for new legal challenges but will continue to navigate the evolving regulatory environment [4]. The case is likely to influence future enforcement actions and shape how courts and regulators approach token classification in the U.S. [1].

The outcome of the Ripple v. SEC case underscores the importance of legal nuance in a rapidly evolving industry. It highlights both the risks and potential benefits of litigation as a tool for defining regulatory boundaries. For market participants, it offers a cautious roadmap through an uncertain landscape, where courts may be more receptive to technological complexity than regulators [3]. As the crypto sector continues to mature, the lessons from this case will likely inform both corporate strategy and legislative efforts aimed at providing clearer guidelines for digital assets. [1][2][3][4][5][6][7]

Source:

[1] Cointelegraph - [https://cointelegraph.com/news/sec-ripple-drop-appeals-enforcement-action](https://cointelegraph.com/news/sec-ripple-drop-appeals-enforcement-action)

[2] Yahoo Finance - [https://finance.yahoo.com/news/sec-ripple-end-appeals-closing-235853898.html](https://finance.yahoo.com/news/sec-ripple-end-appeals-closing-235853898.html)

[3] Brave New Coin - [https://bravenewcoin.com/insights/ripple%E2%80%91sec-lawsuit-news-xrp-case-officially-ends-as-sec-walks-away-from-enforcement-action](https://bravenewcoin.com/insights/ripple%E2%80%91sec-lawsuit-news-xrp-case-officially-ends-as-sec-walks-away-from-enforcement-action)

[4] AInvest - [https://www.ainvest.com/news/xrp-news-today-ripple-sec-year-legal-battle-xrp-price-surges-13-2508/](https://www.ainvest.com/news/xrp-news-today-ripple-sec-year-legal-battle-xrp-price-surges-13-2508/)

[5] Cointribune - [https://www.cointribune.com/en/ripple-and-sec-end-long-legal-battle-as-appeals-are-dropped/](https://www.cointribune.com/en/ripple-and-sec-end-long-legal-battle-as-appeals-are-dropped/)

[6] Coinpedia - [https://coinpedia.org/news/ripple-vs-sec-lawsuit-over-heres-what-happens-after-appeals-dropped/](https://coinpedia.org/news/ripple-vs-sec-lawsuit-over-heres-what-happens-after-appeals-dropped/)