XRP News Today: Ripple Wins Major Legal Battle Against SEC Over XRP Classification

In a landmark decision, the long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has concluded, bringing significant clarity to the broader cryptocurrency industry. Legal expert and prominent commentator Bill Morgan highlighted four key victories that Ripple has secured through this case.

One of the most pivotal moments in the case occurred in July 2023, when U.S. District Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP, conducted on public exchanges, did not constitute securities transactions. This ruling was a major setback for the SEC’s argument and a significant win for Ripple. The court determined that purchasers in the secondary market had no reasonable expectation of profits based on Ripple’s efforts, which disqualified such transactions under the Howey Test. Morgan noted that "commonsense has prevailed" in this ruling.

Judge Torres also ruled that XRP itself is not a security. This decision was crucial as it established that the token, on its own, is not inherently an investment contract. The SEC’s attempt to label all XRP as a security was unequivocally rejected by the court. Morgan emphasized this point, reinforcing the fact that the ruling brings clarity to how XRP is classified going forward.

On June 27, 2025, Ripple CEO Brad Garlinghouse confirmed that the company will drop its cross-appeal, and that the SEC is expected to do the same, finalizing the lawsuit for good. While the SEC had initially sought to appeal certain parts of the 2023 ruling, it has promised to withdraw the appeal. With both sides stepping back, the case is now fully closed. Morgan’s statement that it’s “finally OVER” is not just celebratory, it’s legally accurate.

While Ripple did lose on the issue of institutional sales, which the court ruled did violate securities law, the company has since adapted. Ripple faced a proposed $125 million civil penalty, which it moved to settle for $50 million. Although Judge Torres initially rejected that settlement, both sides have signaled their willingness to bring the matter to a close. In the meantime, Ripple has found compliant avenues to continue institutional sales of XRP, demonstrating resilience and adaptability.

The conclusion of this case removes a major source of regulatory uncertainty hanging over XRP and the U.S. crypto market. Ripple’s legal victory sets a precedent that could influence other token-related cases and gives the industry a clearer understanding of what constitutes a security. This reflects renewed investor confidence.

Bill Morgan’s summary captures what many in the crypto world feel: four decisive victories that not only clear XRP’s name but pave the way for a more defined regulatory future.