XRP News Today: SEC and Ripple Drop Appeals Ending Five-Year XRP Lawsuit

The U.S. Securities and Exchange Commission (SEC) and Ripple Labs, Inc. have filed for a joint dismissal of all pending appeals in their five-year legal battle concerning the classification of XRP as a security. The motion was submitted on August 7, 2025, to the U.S. Court of Appeals for the Second Circuit, confirming the parties’ mutual agreement to withdraw their appeals without further litigation. This decision ends a protracted case that has had a significant influence on the cryptocurrency industry and regulatory expectations [1].

The legal dispute began in December 2020 when the SEC filed a lawsuit alleging that Ripple had conducted an unregistered securities offering through the sale of XRP. In July 2023, U.S. District Judge Analisa Torres ruled that XRP sold to the public on exchanges did not meet the definition of a security under the Howey test, but that XRP sold directly to institutional investors did. As a result, Ripple was ordered to pay a $125 million fine, significantly less than the $2 billion initially requested by the SEC [2]. Both parties appealed the ruling, but the appeals have now been formally withdrawn, making Judge Torres’ decision the final legal determination in the matter [3].

The dismissal was reached after months of discussions between the parties. In April 2025, Ripple and the SEC jointly requested a pause in the appeals process, and in May, Ripple sought to reduce the $125 million fine and lift an injunction on XRP sales. While the court denied the request, both sides ultimately agreed to withdraw their appeals before the August 15 deadline for reporting the status of the case to the appeals court [4]. Ripple’s chief legal officer has since indicated that the company will return to its focus on innovation and growth, signaling a potential shift in the firm’s strategic direction [8].

The resolution has already had a measurable effect on XRP’s price, which rose nearly 99% from a low of $1.79 in early April to $3.56 by late July 2025. Analysts view the dismissal as a major overhang removed from the token, potentially enabling further price appreciation as the market digests the news and new demand emerges [5]. The legal certainty provided by the resolution may also encourage institutional investors to reconsider XRP as a viable asset class, increasing its liquidity and market participation.

Legal experts note that while the case has concluded, Ripple remains designated as a “bad actor” under SEC rules, which could still affect its ability to raise capital in certain contexts. Additionally, the broader regulatory environment for cryptocurrencies remains uncertain, with the outcome of this case serving as a precedent but not a definitive policy shift [7]. The SEC’s decision to drop its appeal also reflects a broader regulatory shift under the Biden administration, though critics argue that the agency has increasingly withdrawn from enforcement actions in the crypto space [8].

The resolution of the SEC v. Ripple case is widely regarded as a pivotal moment in crypto regulation, particularly in how digital assets are classified under U.S. securities law. Ripple’s legal battle with the SEC is one of the first major cases to address the status of a token outside the scope of Bitcoin and Ethereum, setting a potential benchmark for future enforcement actions [9]. The case also highlights the evolving relationship between regulators and crypto firms, as both sides seek to balance innovation with investor protection and market stability.

The outcome may encourage other crypto projects to seek resolution through legal means rather than prolonged litigation, especially in cases where regulatory clarity is a key concern. It also underscores the importance of judicial decisions in shaping the crypto landscape, as courts continue to interpret the boundaries of securities law in the context of digital assets.

Source:

[1] SEC.gov (https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26369)

[2] Cointelegraph (https://cointelegraph.com/news/sec-ripple-drop-appeals-enforcement-action)

[3] The Defiant (https://thedefiant.io/news/regulation/sec-ripple-end-five-year-xrp-lawsuit-joint-appeal-dismissal-28d1a73c)

[6] CoinCentral (https://coincentral.com/ripple-and-sec-agree-to-dismiss-appeals-ending-xrp-lawsuit/)

[9] TheStreet (https://www.thestreet.com/crypto/policy/sec-and-ripple-case-is-officially-over)