XRP News Today: Ripple and SEC File Joint Motion to Dismiss Appeals in $125M Settlement

Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) have filed a joint motion to dismiss their appeals, marking a decisive step toward the conclusion of their four-year legal dispute over the XRP token [1]. The motion, submitted on August 7, 2025, was confirmed in the SEC’s latest status report, indicating both parties’ mutual intent to end the case [2]. Once the court formally approves the motion, the litigation will be officially resolved, closing one of the most significant and protracted legal cases in the cryptocurrency industry.

Under the terms of the settlement, Ripple agreed to pay $125 million to the SEC—a fraction of the initial $2 billion penalty sought by the regulator [2]. In exchange, Ripple will be prohibited from selling XRP to institutional investors without first registering the offering with the SEC. This condition reflects the agency’s continued insistence on regulatory compliance for token sales, even as it avoids the broader legal determination that XRP is a security.

The case, which began in December 2020 when the SEC filed its lawsuit alleging Ripple conducted an unregistered securities offering, has had far-reaching implications for the digital asset sector. It has drawn the attention of investors, developers, and regulators globally, with many viewing the outcome as a potential precedent for how the SEC might treat other digital tokens [1]. Ripple, which has consistently argued that XRP functions as a utility token rather than a security, now finds itself in a position to move forward with a clear regulatory boundary, rather than facing an uncertain trial.

For the SEC, the settlement may represent a strategic shift. The agency has faced growing pressure to provide clearer guidance on digital assets, and this case could serve as a model for future enforcement actions. While the resolution does not clarify the legal status of XRP definitively, it avoids a court ruling that might have broadly redefined the regulatory framework for tokens.

The broader market will be watching closely how this settlement influences future enforcement strategies and investor behavior. Ripple’s ability to operate within a defined regulatory perimeter may help restore confidence among institutional participants, potentially leading to more structured engagement between regulators and the crypto industry [1]. The settlement also reinforces a trend of negotiated resolutions in high-stakes legal disputes, which can reduce uncertainty and litigation costs.

As the final procedural steps are completed, the resolution of the Ripple-SEC case highlights the evolving relationship between regulators and the cryptocurrency sector. It underscores the importance of compliance while leaving room for innovation. The outcome is likely to be referenced in future legal and regulatory discussions, shaping the landscape for years to come.

Sources:

[1] XT.com, [https://www.xt.com/en/blog/post/ripples-legal-battle-with-sec-nears-end-joint-motion-to-dismiss-and-settlement](https://www.xt.com/en/blog/post/ripples-legal-battle-with-sec-nears-end-joint-motion-to-dismiss-and-settlement)

[2] XT.com, [https://www.xt.com/en/blog/community-news/2025-08-16T15:50:00.000Z](https://www.xt.com/en/blog/community-news/2025-08-16T15:50:00.000Z)