08.08.2025 05:29

The long-running legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs has definitively concluded. Both parties have jointly withdrawn their appeals from the Second Circuit Court of Appeals, effectively ending the landmark cryptocurrency case. This decision, reached through a mutual agreement to cover their own legal expenses, marks a significant turning point in the regulation of digital assets.

Crucially, the June settlement, wherein Ripple agreed to a $125 million penalty, is now finalized. This sum, previously held in escrow, will be transferred to the U.S. Treasury following the dismissal of the appeals. However, it's important to note that the injunction prohibiting Ripple from engaging in institutional sales of XRP remains in place.

The underlying 2023 court ruling, which distinguished between public and institutional XRP sales, classifying only the latter as securities, will remain untouched by this agreement. This legal precedent, established by Judge Analisa Torres, continues to shape the regulatory landscape for the cryptocurrency industry.

The SEC's initial December 2020 lawsuit accused Ripple and two of its executives, Brad Garlinghouse and Chris Larsen, of conducting an unregistered securities offering through XRP sales. While the SEC later dropped charges against Garlinghouse and Larsen following a partial ruling in Ripple's favor, the company itself faced significant legal challenges. The recent resolution, coinciding with a substantial surge in XRP's value exceeding 10% to $3.31 (according to CoinGecko data), signals a potential shift in market sentiment. This legal victory for Ripple has sent ripples across the cryptocurrency market, indicating the uncertainty surrounding digital asset regulation is far from over, even with the closing of this major case.