XRP News Today: SEC and Ripple End 5-Year XRP Legal Battle with Joint Dismissal

The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have formally ended their five-year legal battle over the classification of XRP as a security. On August 7, 2025, both parties filed a joint motion to dismiss their appeals with the U.S. Court of Appeals for the Second Circuit [1]. This action brings to a close one of the most prominent legal cases in the crypto industry, resolving key regulatory uncertainties surrounding the XRP token [2].

The litigation began in December 2020 when the SEC filed a lawsuit against Ripple, alleging the company violated securities laws by selling unregistered XRP tokens [3]. Ripple challenged these claims, asserting that XRP is a digital payment tool and not a security. The case became a central reference point in the ongoing debate about how U.S. regulators should classify and govern digital assets [4].

A pivotal 2023 ruling from Judge Analisa Torres partially favored Ripple, determining that XRP tokens sold on public exchanges were not securities, while those sold to institutional investors were [5]. This ruling was upheld following the joint dismissal, which means the previous district court decisions—such as the $125 million civil penalty imposed on Ripple—remain in effect. Neither party will recover legal costs, and both have withdrawn their appeals without admitting liability [6].

The resolution has been widely seen as a pragmatic outcome for both sides. Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the company will now shift its focus entirely to business operations [7]. For the SEC, stepping back from further enforcement action suggests a recalibration of its enforcement strategy in the crypto space, though it does not indicate a broader regulatory shift [8].

Market reactions followed the legal developments. XRP’s price surged by approximately 13% in the days after the dismissal filing, reflecting investor relief over the removal of a major legal overhang [6]. The resolution provides much-needed clarity for Ripple, its partners, and the broader crypto industry, setting a precedent for future regulatory interactions [9].

The joint dismissal is viewed by some as a strategic decision to avoid prolonged and costly litigation. It highlights the potential for settlement-driven resolutions in complex crypto-related legal disputes and signals a new chapter for Ripple and the SEC as both parties move forward without the shadow of continued litigation [1].

Source:

[1] Ripple v SEC: Case Officially Over, Appeals Dropped, XRP ... (https://news.bitcoin.com/ripple-v-sec-case-officially-over-appeals-dropped-xrp-eyes-breakout/)

[2] 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)

[3] Ripple-SEC Lawsuit News: XRP Case Officially Ends as ... (https://bravenewcoin.com/insights/ripple%E2%80%91sec-lawsuit-news-xrp-case-officially-ends-as-sec-walks-away-from-enforcement-action)

[4] XRP News Today: Ripple and SEC Case Officially Closed ... (https://www.ainvest.com/news/xrp-news-today-ripple-sec-case-officially-closed-year-legal-battle-2508/)

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

[6] Ripple Triumphs as SEC Drops Appeal – But Bots ... (https://www.binance.com/en/square/post/28038381222737)

[7] SEC and Ripple Close Book on 5-year Legal Battle (https://www.cryptoinamerica.com/p/sec-and-ripple-close-book-on-5-year)

[8] High-Profile XRP Lawsuit Reaches End After SEC And ... (https://zycrypto.com/high-profile-xrp-lawsuit-reaches-end-after-sec-and-ripple-drop-their-appeals-in-second-circuit/)

[9] Ripple and the SEC move to end litigation after five years ... (https://www.mitrade.com/insights/news/live-news/article-3-1022325-20250808)