XRP News Today: Ripple and SEC Drop Appeals Ending XRP Lawsuit After Five-Year Legal Battle

The U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. have concluded their protracted legal battle by jointly dismissing their appeals in the U.S. Court of Appeals for the Second Circuit. The move, confirmed in a court filing on August 7, 2025, brings an end to a nearly five-year dispute over whether XRP, Ripple’s digital asset, qualifies as a security under U.S. law [1]. The resolution marks a significant development in the cryptocurrency regulatory landscape, offering clarity to market participants and signaling a potential shift in enforcement strategies [2].

The SEC initially filed the lawsuit in late 2020, alleging that Ripple violated federal securities laws by offering and selling XRP as an unregistered security. A U.S. district judge, Analisa Torres, issued a mixed ruling in July 2023, determining that XRP tokens sold on public exchanges did not meet the legal definition of a security, while tokens sold to institutional investors did. Ripple was ordered to pay a $125 million fine, a far lower amount than the $2 billion originally sought by the SEC [2]. Following the ruling, both parties pursued appeals, with the SEC filing its appeal in October 2024 and Ripple responding with a cross-appeal.

The appeals process was abandoned after the SEC and Ripple submitted a joint motion to the Second Circuit in April 2025, requesting a temporary pause. A tentative agreement was reached in May, although Judge Torres denied a request to dissolve an injunction or reduce the fine in June, citing the need for Ripple to continue compliance with federal securities laws [3]. The joint dismissal of appeals, filed directly with the Second Circuit after the SEC’s internal vote, indicates that both parties have accepted the lower court’s ruling as final.

Ripple’s chief legal officer, Stuart Alderoty, announced the development on X, stating, “The end…and now back to business,” highlighting the company’s focus on returning to core operations [4]. The resolution aligns with broader regulatory shifts under the current administration, which has signaled a more hands-off approach to cryptocurrency enforcement. The SEC has recently dropped or paused multiple cases against other crypto firms, suggesting a strategic realignment [5].

The outcome has had a tangible impact on XRP’s market performance. The token surged nearly 99% from a low of $1.79 on April 9 to a peak of $3.56 on July 22. As of the latest market data, XRP traded at $3.31, reflecting renewed investor optimism following the legal resolution [6].

While the case concludes with a favorable outcome for Ripple, legal experts have pointed out that the ruling does not establish a clear precedent for other cryptocurrencies. Ripple remains designated as a “bad actor” by the SEC, limiting its ability to participate in certain fundraising activities [7].

The resolution marks a pivotal moment in the evolving regulatory landscape for digital assets, offering clarity to a sector long mired in legal uncertainty.

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

[2] CoinCentral (https://coincentral.com/ripple-and-sec-agree-to-dismiss-appeals-ending-xrp-lawsuit/)

[3] TheStreet (https://www.thestreet.com/crypto/policy/sec-and-ripple-case-is-officially-over)

[4] Brave New Coin (https://bravenewcoin.com/insights/the-ripple-case-is-over-the-sec-just-blinked-victory-for-xrp)

[5] Cryptopolitan (https://www.cryptopolitan.com/sec-ripple-joint-dismissal-of-appeals/)

[6] CoinGecko (via CoinGape, https://coingape.com/xrp-lawsuit-ends-as-ripple-and-sec-file-joint-dismissal/)

[7] Bitcoin.com (https://news.bitcoin.com/ripple-v-sec-case-officially-over-appeals-dropped-xrp-eyes-breakout/)