XRP News Today: Ripple and SEC End Five-Year Legal Battle XRP Surges 10% Post-Settlement

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have officially ended their five-year legal battle over the status of XRP, concluding a landmark case with far-reaching implications for the cryptocurrency industry. On August 7, 2025, both parties filed a joint dismissal of their appeals in the Second Circuit Court of Appeals, effectively bringing the case to a close. The decision finalizes a July 2023 ruling by U.S. District Judge Analisa Torres, who found that Ripple’s institutional sales of XRP violated securities laws, while retail sales did not [1].

The case, which began in December 2020, centered on whether XRP should be classified as a security under U.S. law. The SEC argued that XRP was being sold as an unregistered security, while Ripple maintained that it was a digital asset. The 2023 ruling provided a nuanced outcome—penalizing Ripple for certain sales while offering broader clarity to the market by excluding secondary-market retail transactions from securities regulation [2]. Both the SEC and Ripple had appealed the decision, with the SEC seeking to overturn the favorable ruling on retail sales and Ripple defending its broader legal stance. However, in June 2025, Ripple CEO Brad Garlinghouse announced that the company would abandon its appeal, signaling the beginning of the end for the legal dispute [3].

As a result of the dismissal, Ripple will pay a $125 million civil penalty to the SEC and remain under a court injunction to prevent further violations. Despite this, the ruling allows for continued trading of XRP on open exchanges without legal ambiguity. Notably, the appellate court did not issue a final decision on the broader classification of digital assets, leaving certain legal questions unresolved. Nonetheless, many legal observers expect the 2023 ruling to serve as a precedent in future cases involving cryptocurrencies [4].

The resolution has already influenced market sentiment. In the 24 hours following the announcement, XRP surged by 10%, reaching $3.31, reflecting investor relief over the conclusion of the case [5]. Legal experts and crypto advocates have praised the settlement as a positive outcome. Attorney Bill Morgan described it as the best news in years, emphasizing the case’s closure and the potential for broader regulatory clarity [6].

While the Ripple case is now settled, its impact on U.S. cryptocurrency policy is likely to persist. The decision offers a framework for distinguishing between securities and non-securities in digital assets, potentially guiding future enforcement actions. However, the broader debate on how to classify and regulate digital assets remains open, and the outcome may influence how other tokens are evaluated in the absence of a comprehensive legal framework [1].

Source:

[1] title1.............................(https://finance.yahoo.com/news/sec-ripple-end-appeals-closing-235853898.html)

[2] title2.............................(https://www.financemagnates.com/trending/xrp-eyes-350-ripple-sec-five-year-legal-dispute-officially-concludes/)

[3] title3.............................(https://www.fastcompany.com/91382703/xrp-price-today-crypto-surges-ripple-sec-lawsuits-dropped)

[4] title4.............................(https://www.tradingview.com/news/cryptonews:03d5d0cb2094b:0-xrp-surges-over-13-after-ripple-and-sec-drop-final-appeals-in-landmark-case/)

[5] title5.............................(https://bravenewcoin.com/insights/ripple%E2%80%91sec-lawsuit-news-xrp-case-officially-ends-as-sec-walks-away-from-enforcement-action)

[6] title6.............................(https://www.bitdegree.org/crypto/news/ripple-and-sec-end-fight-xrp-lawsuit-finally-settled-after-4-years)