XRP News Today: Ripple and SEC End Five-Year Legal Battle Over XRP Classification

The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have officially concluded their five-year legal dispute over the classification of XRP, a major cryptocurrency, as a security. In a joint filing on August 7, 2025, both parties agreed to dismiss the SEC’s appeal and Ripple’s cross-appeal in the Second Circuit Court of Appeals, effectively ending the high-profile enforcement action [1]. The court confirmed the stipulation, marking the end of a legal battle that had drawn significant attention from the cryptocurrency industry and regulatory bodies [2].

The resolution was first indicated in mid-June 2025, when reports suggested that the two sides had reached a settlement in principle, although formal court filings were still pending [3]. By July 2025, further court documents confirmed the dismissal of all outstanding appellate proceedings [4]. On August 5, 2025, Ripple confirmed that the appeals were being withdrawn, with its chief legal officer stating on X: “The end…and now back to business” [1].

The legal dispute began in December 2020, when the SEC filed a lawsuit against Ripple, alleging that the company’s sales of XRP tokens constituted an unregistered securities offering. The case took a significant turn in 2023 when U.S. District Judge Sandra Analisa Torres ruled that a substantial portion of Ripple’s XRP sales did not qualify as securities, offering partial legal validation for the token [5]. Despite the SEC’s subsequent appeal, the outcome of the case is now considered definitive.

The resolution is seen as a significant win for Ripple, which had faced regulatory scrutiny for years. XRP remains one of the few cryptocurrencies partially recognized under U.S. securities law, potentially offering greater clarity for other digital assets seeking legal validation. For the SEC, the decision may signal a shift in its enforcement strategy, as it appears to have chosen not to continue the case in the appellate court.

With the legal battle over, Ripple is expected to redirect focus to expanding its global operations and promoting XRP’s use in cross-border payments and financial services. The broader crypto market may also benefit from the precedent set, as it could influence how other tokens are classified and regulated under the U.S. legal framework [6]. XRP’s price surged by 4% following the news, reflecting investor optimism and renewed interest from institutional investors [1].

The end of the Ripple-SEC case represents a turning point in the ongoing dialogue between regulators and the cryptocurrency industry, offering a glimpse of potential harmonization in the future.

Source:

[1] SEC-Ripple enforcement case to end after motion to drop... (https://cointelegraph.com/news/sec-ripple-drop-appeals-enforcement-action)

[2] SEC and Ripple to wrap up years-long legal battle after... (https://cryptobriefing.com/sec-ripple-appeals-xrp/)

[3] Ripple and SEC Agree to Dismiss Appeals Ending XRP... (https://coincentral.com/ripple-and-sec-agree-to-dismiss-appeals-ending-xrp-lawsuit/)

[4] SEC and Ripple End Five-Year XRP Lawsuit With Joint... (https://thedefiant.io/news/regulation/sec-ripple-end-five-year-xrp-lawsuit-joint-appeal-dismissal-28d1a73c)

[5] XRP Investors Rejoice After SEC and Ripple File to... (https://www.msn.com/en-us/money/markets/xrp-investors-rejoice-after-sec-and-ripple-file-to-dismiss-appeals/ar-AA1K7sl9?ocid=finance-verthp-feeds)

[6] The Ripple Case Is Over. The SEC Just Blinked. Victory for... (https://bravenewcoin.com/insights/the-ripple-case-is-over-the-sec-just-blinked-victory-for-xrp)