XRP News Today: SEC Closes Ripple Legal Battle Shifts to Crypto Regulation Focus

The U.S. Securities and Exchange Commission (SEC) has confirmed its intention to shift focus toward crafting clear and comprehensive cryptocurrency regulations following the conclusion of its protracted legal battle with Ripple Labs [1]. The dispute, which lasted nearly five years, was formally closed after both parties filed to withdraw their appeals and agreed to cover their own legal costs and fees, as revealed in a filing with the Second Circuit Appeals Court [2]. SEC Chair Paul Atkins acknowledged the resolution as a pivotal moment, stating it allows the agency to transition from courtroom battles to policy development and to focus on building a regulatory framework that supports innovation while protecting investors [3].

The case began in December 2020, when the SEC sued Ripple, alleging that the company raised $1.3 billion through unregistered securities sales using its XRP token [6]. In July 2023, Judge Analisa Torres ruled that XRP was not a security in transactions with retail investors but was considered a security in sales to institutional buyers. Ripple ultimately agreed to a $125 million settlement in August 2024 [7]. The conclusion of this legal battle has been viewed as a “welcome development” by Commissioner Hester Peirce, who noted that it frees up resources and attention for broader policy efforts [5].

The resolution has also reinvigorated discussions around the proposed Digital Asset Market Clarity Act, or the CLARITY Act, which seeks to establish a defined structure for digital asset markets and bring much-needed regulatory clarity [8]. Republican lawmakers, including the Senate Banking Committee, aim to pass the bill by Sept. 30, but their efforts face resistance from Democratic lawmakers, who have labeled the legislation as “dangerous” and expressed concerns over its potential risks [9]. The debate over the bill reflects a growing divide between the two major political parties on how to approach the evolving crypto industry.

Industry observers suggest that the outcome of the Ripple case may accelerate regulatory efforts as the SEC and other policymakers are now under greater scrutiny to provide clear and actionable rules for digital assets [10]. However, the precise direction of those regulations remains uncertain, particularly regarding the legal classification of digital tokens and the extent of investor protections that should be mandated [11]. With the SEC no longer embroiled in litigation over XRP, attention now turns to whether it will leverage this newfound focus to deliver a coherent and forward-looking regulatory approach.

Source:

[1] AInvest. https://www.ainvest.com/news/sec-concludes-ripple-case-shifts-focus-crypto-regulation-framework-2508/

[2] Binance. https://www.binance.com/en/square/post/282130****4410

[3] CoinGape. https://coingape.com/trending/paul-atkins-reacts-to-ripple-vs-sec-lawsuit-end-heres-whats-coming-next/

[4] AInvest. https://www.ainvest.com/news/xrp-news-today-sec-signals-shift-crypto-policy-litigation-ripple-case-progress-2508/

[5] The. https://thecryptobasic.com/2025/08/12/sec-commissioner-says-ripple-lawsuit-is-finally-laid-to-rest/

[6] Cointelegraph. https://cointelegraph.com/news/sec-focus-clear-crypto-regulations-ripple-case-paul-atkins

[7] Coinpedia. https://coinpedia.org/news/breaking-sec-chair-paul-atkins-reacts-to-ripple-vs-sec-says-chapter-closed/

[10] Bitcoin.com. https://news.bitcoin.com/sec-declares-ripple-xrp-case-closed-shifts-focus-to-clear-crypto-rules/

[11] Coinpedia. https://coinpedia.org/news/sec-chair-paul-atkins-calls-xrp-lawsuit-a-turning-point/