XRP News Today: Ripple and SEC End 5-Year XRP Lawsuit XRP Rises 12% on Resolution

Ripple and the U.S. Securities and Exchange Commission (SEC) have officially concluded the five-year-long XRP lawsuit with a joint motion to dismiss all appeals, signaling a major turning point in the crypto regulatory landscape [1]. The filing, submitted under Federal Rule of Appellate Procedure 42(b)(1) to the Second Circuit Court, brings the legal battle to a formal close. Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the decision, emphasizing that the company is now refocusing on business operations [1].

The resolution follows a July 2023 ruling by Judge Analisa Torres, who determined that XRP is not a security in its standard exchange-based sales but found Ripple in violation of securities laws for its direct institutional sales of the token. As part of the court's decision, Ripple was ordered to pay a $125 million fine and was placed under a permanent injunction prohibiting future institutional sales of XRP [1]. Both parties had appealed the decision, with the SEC challenging the non-security ruling and Ripple contesting the institutional sale classification.

The joint dismissal of appeals marks the first step in finalizing the case. The motion states that each side will bear its own legal costs, and no further claims will be pursued. Ripple had reportedly spent over $150 million defending against the allegations since the lawsuit was filed in December 2020 [1]. The move comes after an internal vote at the SEC, with most commissioners favoring a resolution amid shifting regulatory and political conditions in early 2025 [1].

The market reacted positively to the news. XRP surged nearly 12% on the day the dismissal was filed, rising to $3.38 from below $3 earlier in the week. Analysts observed that the resolution significantly reduced legal uncertainty for Ripple and the broader cryptocurrency sector, which had closely followed the case [1]. Although the Second Circuit still needs to formally enter the dismissal, the filing effectively ends the legal dispute.

This outcome has broader implications for the crypto industry, as courts continue to define the boundaries of securities law in relation to digital assets. Ripple and the SEC’s coordinated step reflects a pragmatic approach to resolving a protracted and high-profile conflict without further escalation.

Source: [1] Ripple and SEC End 5-Year XRP Lawsuit Battle With Surprise Court Move (https://blockonomi.com/ripple-and-sec-end-5-year-xrp-lawsuit-battle-with-surprise-court-move/)