XRP News Today: Ripple and SEC Drop Appeals Ending Four-Year XRP Legal Battle

Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) have formally dismissed all remaining appeals in their landmark legal dispute, effectively concluding a four-year battle over whether XRP constitutes a security. The decision, announced on August 7, 2025, follows a joint filing with the U.S. Court of Appeals for the Second Circuit, in which both parties voluntarily withdrew their appeals [1]. Ripple agreed to pay $50 million as part of the settlement, a reduction from the original $125 million fine, while the SEC dropped its appeal of the 2023 ruling that found XRP not a security when sold on public exchanges [1]. Both sides agreed to bear their own legal costs, and the case’s permanent injunction remains in place.

The resolution sent XRP surging over 13% in 24 hours, with the token hitting a high of approximately $3.36 according to CoinMarketcap [1]. The price reaction reflects investor optimism that the legal certainty provided by the ruling may facilitate the approval of a spot XRP exchange-traded fund (ETF), a possibility highlighted by Eric Balchunas, an ETF analyst at Bloomberg, who forecasts a 95% chance of approval this year [1]. Ripple’s Chief Legal Officer, Stuart Alderoty, described the outcome as the “end…and now back to business” [1], signaling the company’s intent to refocus on operational growth.

The lawsuit, filed in December 2020, stemmed from the SEC’s claim that Ripple and its executives conducted an unregistered securities offering through XRP sales. Ripple has consistently argued that XRP is a digital currency and not subject to securities laws [1]. The July 2023 ruling by U.S. District Judge Analisa Torres upheld this distinction for public sales but found Ripple liable for securities violations in direct institutional sales. The dismissal of the appeals confirms this partial outcome and removes a major regulatory hurdle for Ripple’s operations.

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 With the appeals withdrawn, the 2023 ruling stands as a key legal precedent that could influence future cases involving other crypto assets.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

The resolution also aligns with the SEC’s broader shift in enforcement strategy under the new administration. Since Donald Trump’s return to the White House, the agency has scaled back several crypto-related cases, resulting in the dismissal of over a dozen ongoing probes [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.

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/)