XRP News Today: Ripple and SEC end legal battle XRP jumps 12%

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have formally ended their nearly five-year legal dispute, leading to a 12% surge in XRP’s price. The resolution came after both parties jointly dismissed their appeals in the U.S. Court of Appeals for the Second Circuit on August 7, 2025. Ripple’s chief legal officer, Stuart Alderoty, confirmed the case was over in a post on X, stating the company could now “get back to business” [1].

The settlement includes Ripple paying $50 million in penalties and receiving the return of $75 million from escrowed funds, which had been held since June 2024. The SEC also withdrew its appeal of a 2023 ruling that determined XRP’s programmatic sales on public exchanges were not classified as securities. Ripple, meanwhile, dropped its cross-appeal regarding the 2023 decision that found institutional XRP sales did violate securities laws. Neither party admitted wrongdoing, and Ripple remains subject to a permanent injunction on institutional XRP sales [1].

The resolution follows a July 2023 court ruling by Judge Analisa Torres, which partially favored Ripple, finding that while institutional XRP sales met the Howey Test for securities, retail sales did not. This outcome was seen as a partial win for Ripple and the broader crypto industry, as it established a precedent for the regulatory treatment of digital assets. The case had been closely watched as a test of how U.S. regulators would handle crypto tokens under existing securities law [1].

Market reaction to the settlement was immediate and robust. XRP’s price rose over 12% in the 24 hours following the announcement, with trading volume jumping to $9.54 billion, a 140% increase from the previous day. The settlement provided much-needed legal clarity for XRP and Ripple, reducing regulatory uncertainty that had persisted for years. Analysts noted that the outcome could signal a broader shift in the SEC’s enforcement approach, particularly under the incoming chair, Paul Atkins, as similar cases against exchanges such as Coinbase and Kraken have also seen regulatory easing [1].

While the settlement brings closure to Ripple and XRP, it does not fully resolve all regulatory uncertainties in the crypto sector. However, it marks a key step toward a more predictable legal environment for digital assets in the U.S. The resolution is expected to support Ripple’s expansion in cross-border payments and encourage greater institutional adoption of XRP. For now, the token appears to be in a stronger position than at any point in the past five years, with the market responding positively to the news of the legal resolution [1].

Source: [1] XRP soars 12% as SEC and Ripple formally end legal dispute (https://crypto.news/xrp-soars-ripple-sec-end-legal-dispute-2025/)