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In a pivotal moment for the cryptocurrency industry,
Labs Inc. and the U.S. Securities and Exchange Commission (SEC) have reached a definitive resolution in their high-profile legal dispute over the digital asset. On August 7, 2025, both parties filed a joint stipulation with the U.S. Court of Appeals for the Second Circuit to dismiss all appeals, marking the formal end of a legal battle that began in December 2020 [1]. This action follows a 2023 ruling by U.S. District Judge Analisa Torres, who determined that XRP tokens sold to the public did not qualify as securities, while those sold directly to institutional investors did [2].The decision to drop appeals came after months of negotiations, during which Ripple and the SEC had previously requested a temporary pause in legal proceedings. The settlement includes a $50 million payment by Ripple, a reduction from the original $125 million fine set by Judge Torres [3]. While the firm remains designated as a “bad actor” under SEC rules, the resolution removes significant legal uncertainties surrounding XRP's classification and Ripple’s ongoing business activities.
The outcome has already influenced market sentiment. XRP’s price surged more than 4% immediately after the announcement and continued to rise in the following 24 hours [5]. Analysts suggest that the settlement increases the likelihood of a spot XRP exchange-traded fund (ETF) being approved, with Bloomberg ETF analyst Eric Balchunas estimating a 95% chance of approval this year [5]. Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the firm’s intent to refocus on core business operations, stating, “The end—and now back to business.”
The case has broader implications for the regulatory landscape in the U.S. cryptocurrency sector. The dismissal reflects a shift in enforcement priorities under the Trump administration, which has signaled a move toward less aggressive regulation of digital assets [6]. While the ruling does not establish a binding precedent for other crypto projects, it provides a reference point for how the SEC may treat token sales in similar contexts. Ripple’s legal victory in the public sale of XRP offers clarity for exchanges and investors involved in similar offerings [7].
The resolution of the XRP lawsuit represents one of the most significant legal milestones in the history of cryptocurrency in the United States. With the case now concluded, Ripple and the broader digital asset industry are left to navigate a regulatory environment that appears to be in flux, with potential long-term effects on the development and adoption of blockchain-based financial products [1].
Source:
[1] Cointelegraph, [https://cointelegraph.com/news/sec-ripple-drop-appeals-enforcement-action](https://cointelegraph.com/news/sec-ripple-drop-appeals-enforcement-action)
[2] AInvest, [https://www.ainvest.com/news/xrp-news-today-sec-ripple-drop-appeals-year-xrp-lawsuit-2508/](https://www.ainvest.com/news/xrp-news-today-sec-ripple-drop-appeals-year-xrp-lawsuit-2508/)
[3] CoinDesk, [https://www.coindesk.com/policy/2025/08/07/sec-s-long-running-case-against-ripple-officially-over](https://www.coindesk.com/policy/2025/08/07/sec-s-long-running-case-against-ripple-officially-over)
[5] Crypto News, [https://crypto.news/xrp-soars-ripple-sec-end-legal-dispute-2025/](https://crypto.news/xrp-soars-ripple-sec-end-legal-dispute-2025/)
[7] CoinGape, [https://coingape.com/xrp-lawsuit-ends-as-ripple-and-sec-file-joint-dismissal/](https://coingape.com/xrp-lawsuit-ends-as-ripple-and-sec-file-joint-dismissal/)
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