XRP News Today: SEC and Ripple End Legal Battle as XRP Surges 10%

The U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. have officially ended their long-running legal battle over the status of XRP, with both parties withdrawing their appeals in the U.S. Court of Appeals for the Second Circuit on August 7, 2025 [1]. The resolution confirms a 2023 ruling by U.S. District Judge Analisa Torres, which determined that XRP sales on public exchanges do not qualify as securities, while institutional sales do [1].

The court filing, submitted jointly by the SEC and Ripple, noted that each party would bear its own legal costs, signaling a mutual acknowledgment of the case’s conclusion. Ripple had previously agreed to a $125 million civil penalty in June, which has now been authorized for transfer to the U.S. Treasury following the dismissal of appeals. The permanent injunction preventing Ripple from selling XRP to institutional investors remains in place, limiting the company’s ability to conduct large-scale transactions [1].

The resolution coincided with a significant market reaction: XRP surged more than 10% in the 24 hours following the filing, reaching $3.31 according to CoinGecko [1]. The price movement reflects investor optimism over the removal of legal uncertainty and the broader implications for the regulatory environment of digital assets. Ripple’s CEO, Brad Garlinghouse, had previously anticipated a prolonged appeal process, but the decision to drop the appeals suggests a strategic shift to focus on future growth [2].

The case, which began in December 2020 when the SEC accused Ripple and two of its executives of conducting an unregistered securities offering, has been a landmark dispute with significant implications for the crypto industry. The 2023 ruling was seen as a partial victory for Ripple and a precedent-setting moment for other companies navigating similar regulatory challenges [1]. The outcome did not exonerate Ripple entirely but provided a legal framework that distinguishes between public and institutional sales of digital tokens.

Ripple’s Chief Legal Officer has since called on U.S. lawmakers to avoid granting the SEC permanent authority over crypto assets, advocating for a balanced regulatory approach that supports innovation [3]. The company’s stance reflects broader concerns within the industry about the concentration of regulatory power and its potential to stifle development. While the resolution of this case offers clarity for Ripple, it does not necessarily signal a consistent or favorable shift in SEC policy for all digital assets.

The closure of the appeals marks a pivotal moment in the evolving legal landscape of crypto. For Ripple, it represents a strategic win and the potential to refocus efforts on product development and market expansion. For the broader industry, it may signal a more nuanced approach to regulation, though the long-term implications remain to be seen as other cases proceed through the courts.

Source: [1] Decrypt: SEC and Ripple End Appeals, Closing Landmark Crypto Case as XRP Soars (https://decrypt.co/334144/sec-ripple-end-appeals-closing-landmark-crypto-case)

[2] Blockchain News: Ripple CEO Foresees Prolonged SEC Appeal Process Following Favorable XRP Ruling (https://blockchain.news/Profile/Rebeca-Moen)

[3] CoinCentral: Ripple CLO Urges Senate to Avoid Permanent SEC Control Over Crypto (https://coincentral.com/ripple-clo-urges-senate-to-avoid-permanent-sec-control-over-crypto/)