XRP News Today: Ripple and SEC End Legal Battle XRP Price Rises 13%

In a landmark resolution on August 7, 2025, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs concluded their nearly five-year legal battle by jointly dismissing their appeals in the Second Circuit. The outcome confirmed a 2023 ruling by Judge Analisa Torres, which determined that XRP tokens sold on public exchanges to retail investors are not classified as securities. However, the court also ruled that XRP sold directly to institutional investors did qualify as unregistered securities under the Securities Act [1].

The case began in December 2020 when the SEC sued Ripple over the sale of more than $1.3 billion in XRP, claiming the tokens constituted unregistered securities. Ripple consistently maintained that XRP was not a security and that the SEC's enforcement actions were overly broad. The 2023 ruling was widely seen as a strategic and symbolic win for Ripple and the broader crypto industry, particularly in distinguishing between secondary market transactions and direct token offerings [2].

Under the settlement terms, Ripple agreed to pay a $125 million fine in connection with institutional XRP sales and committed to compliance measures for future institutional transactions. Both parties agreed to bear their own legal costs, and the decision to drop appeals reflects a mutual desire to avoid the uncertainty and expense of further litigation [3].

The market reacted swiftly to the ruling, with XRP experiencing a 13% price surge as investors and analysts welcomed the legal clarity. This development has led to speculation about the potential for XRP-based financial products, including ETFs, should institutional confidence grow. The ruling is also expected to influence future regulatory assessments of token securities, providing a framework for distinguishing between different types of token transactions [4].

Pro-XRP attorney Bill Morgan publicly criticized Bitcoin advocate Michael Saylor for his stance that all altcoins are securities. Morgan’s comments, following Ripple’s legal victory, emphasized the significance of the ruling in challenging the assertions of high-profile Bitcoin proponents [5].

Ripple’s Chief Legal Officer, Stuart Alderoty, noted the importance of the outcome in a brief statement: “The end…and now back to business.” The resolution allows Ripple to refocus on its global operations, free from the burden of prolonged litigation [6].

For the broader crypto industry, the decision offers a cautiously optimistic signal. It highlights the role of legal nuance in navigating regulatory uncertainty and suggests that courts may be more receptive to the complexities of blockchain technology than regulators. The outcome also underscores the challenges of enforcement-driven regulation in a rapidly evolving sector.

With the case now closed, attention turns to potential legislative developments in Congress that could provide clearer guidelines for digital assets. Ripple’s legal victory may also spur further speculation about the possibility of a BlackRock XRP ETF, as the confirmation of XRP’s non-security status in retail transactions opens new avenues for institutional participation [7].

Source:

[1] Ripple and SEC End Legal Battle by Dropping Appeals - (https://www.pymnts.com/blockchain/2025/ripple-and-sec-end-legal-battle-by-dropping-appeals/)

[2] Impact of the Ripple-SEC Settlement on the Crypto Industry - (https://kelman.law/impact-of-the-ripple-sec-settlement-on-the-crypto-industry/)

[3] SEC Ends Lawsuit Against Ripple, Company to Pay $125 ... - (https://finance.yahoo.com/news/sec-ends-lawsuit-against-ripple-154403017.html)

[4] Ripple and SEC End Long Legal Battle as Appeals Are ... - (https://www.cointribune.com/en/ripple-and-sec-end-long-legal-battle-as-appeals-are-dropped/)

[5] XRP Army Celebrates Being on 'Right Side of History' as ... - (https://finance.yahoo.com/news/xrp-army-celebrates-being-side-161935204.html)

[7] BlackRock XRP ETF Speculation Heats Up After Ripple Lawsuit Resolution - (https://www.cryptoninjas.net/news/blackrock-xrp-etf-speculation-heats-up-after-ripple-lawsuit-resolution/)