XRP News Today: Ripple SEC Legal Battle Ends With $125M Settlement And Bad Actor Removal

Ripple has achieved a decisive legal victory in its protracted battle with the U.S. Securities and Exchange Commission (SEC), paving the way for renewed business expansion and market confidence. On July 31, 2025, the SEC removed Ripple from its “Bad Actor” list, effectively allowing the company to resume private securities offerings under Regulation D [1]. This resolution followed a five-year legal challenge that began in December 2020, when the SEC filed a lawsuit against Ripple Labs and its executives, accusing the firm of conducting unregistered securities sales [7].

The case concluded with Ripple agreeing to a $125 million civil penalty—a significantly lower figure than the SEC’s initial demand of $2 billion [9]. While the settlement does not fully remove the securities classification of XRP in institutional contexts, it grants the company the regulatory clarity needed to focus on strategic growth and development [6]. The removal of fundraising restrictions has already triggered a positive response from the market, with XRP’s price rising by approximately 5–11% following the settlement [8].

Ripple’s legal team, led by Chief Legal Officer Stuart Alderoty, confirmed that both parties had filed to dismiss their appeals in the Second Circuit, effectively ending the case [6]. The resolution marks a turning point for Ripple, which can now redirect its efforts toward expanding its cross-border payment solutions and enhancing its blockchain infrastructure. The firm also announced plans for a Protocol 23 upgrade, expected to boost the utility and adoption of its network [2].

The outcome has broader implications for the cryptocurrency industry. Unlike previous SEC actions against companies like Telegram and Block.one, the Ripple settlement offers clearer regulatory guidance for enterprise tokens [8]. Analysts suggest that this clarity may encourage more institutional interest in the sector, although an XRP ETF listing remains uncertain [8]. The ruling is seen as a potential precursor to broader regulatory developments, especially as more firms seek to navigate the evolving legal landscape.

Despite the positive legal resolution, market activity has not been entirely stable. Large XRP holders—commonly known as “whales”—have sold approximately $1.9 billion worth of the token in the short term, reflecting some uncertainty about its future trajectory [8]. However, this activity does not detract from the overall momentum Ripple has regained following the removal of regulatory constraints.

The Ripple vs. SEC case has been one of the most closely watched legal disputes in the crypto space, setting key precedents for how regulatory bodies interact with blockchain firms. While the SEC retains a degree of authority over XRP’s classification in structured offerings, Ripple has successfully eliminated the most restrictive barriers to its operations [6]. This development highlights the ongoing need for a balanced legal framework that supports innovation while safeguarding investor interests.

With its fundraising capabilities restored, Ripple is now in a stronger position to execute its long-term strategic goals. The company is expected to accelerate the development of its global payment solutions, further solidifying its role as a major player in the fintech and digital asset ecosystems.

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Source:

[1] title: Ripple Secures Major Legal Win as SEC Lifts Bad Actor

url: https://www.ainvest.com/news/xrp-news-today-ripple-secures-major-legal-win-sec-lifts-bad-actor-disqualification-2508/

[2] title: Ripple Scores Major Win as SEC Lifts “Bad Actor” Ban

url: https://coinpedia.org/news/ripple-scores-major-win-as-sec-lifts-bad-actor-ban/

[6] title: Ripple vs SEC Lawsuit Over? Here's What Happens After

url: https://cryptorank.io/news/feed/5a301-ripple-vs-sec-lawsuit-over-heres-what-happens-after-appeals-dropped

[7] title: Ripple Vs SEC: The Historic Legal Battle Ends After 4 Years

url: https://www.mitrade.com/insights/news/live-news/article-3-1022155-20250808

[8] title: XRP price today: whales dump $1.9B after Ripple's legal win

url: https://m.economictimes.com/news/international/us/xrp-price-today-whales-dump-1-9b-after-ripples-legal-win-short-term-test-or-medium-term-breakout-ahead/articleshow/123176340.cms

[9] title: High-Profile XRP Lawsuit Reaches End After SEC And

url: https://zycrypto.com/high-profile-xrp-lawsuit-reaches-end-after-sec-and-ripple-drop-their-appeals-in-second-circuit/