XRP News Today: Ripple-SEC Legal Battle Ends XRP ETF Likelihood Surpasses 90%

The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has officially concluded, marking a pivotal moment in the cryptocurrency industry. On August 7, 2025, both parties agreed to withdraw all appeals, effectively finalizing the 2023 court decision that classified XRP as a security only in institutional sales but not in retail exchanges [1]. This resolution brings legal certainty to XRP and sets a potential precedent for future digital asset regulation.

The case, which began in 2020, saw the SEC accuse Ripple of conducting an unregistered securities offering through its XRP token. Ripple contested the classification of XRP as a security, emphasizing its use as a digital asset for cross-border payments. The settlement reflects a strategic compromise: the SEC secures a partial victory by affirming XRP as a security in institutional contexts, while Ripple avoids a complete loss that could have severely impacted its operations and market confidence [1].

In the wake of the announcement, XRP saw a significant price increase, rising more than 13% to trade at $3.36. Analysts attribute this surge to the removal of a major regulatory uncertainty that had long constrained institutional and retail participation in the token [1]. Market observers now speculate that the legal clarity could pave the way for a U.S. spot XRP ETF application within months. A digital asset strategist noted, “We’re expecting an XRP ETF application very soon. The SEC no longer has the same ammunition to oppose it” [1].

The resolution of the case has broader implications for the crypto industry. It establishes a clearer legal framework for distinguishing between public and institutional token sales, which could inform future regulatory actions against other digital asset projects. Legal experts have labeled the outcome a watershed moment, with one former SEC official stating, “This resolves the uncertainty—at least for XRP” [1]. The decision may also influence ongoing legal proceedings and future legislative developments related to digital assets.

Ripple has expressed optimism about the future, with company representatives stating that the resolution allows the firm to focus on international expansion and infrastructure development. The firm’s leadership described the conclusion of the litigation as a “chapter closed” and emphasized their confidence in moving forward [1].

Industry analysts estimate that the likelihood of an XRP ETF approval is now above 90%, particularly as the SEC has chosen not to pursue further legal challenges against the 2023 ruling. If approved, XRP would join Bitcoin and Ethereum as institutional-grade cryptocurrency investment vehicles, further legitimizing the asset class in mainstream finance [1].

The impact of the lawsuit’s conclusion is not limited to XRP alone. The case provides a reference point for future token classification discussions and may influence how regulators approach digital assets globally. As legal clarity emerges, the industry is poised to see increased institutional interest and broader adoption, signaling a new phase for XRP and the crypto market as a whole [1].

Source:

[1] Breaking: XRP Lawsuit Ends – Is an XRP ETF Next? (https://thebitjournal.com/breaking-xrp-lawsuit-ends-is-an-xrp-etf-next/)