08.08.2025 10:00
The protracted legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has concluded. A joint filing on August 7th, 2025, with the 2nd Circuit Court of Appeals officially dropped all appeals from both parties, bringing a close to the nearly five-year-long dispute that significantly impacted cryptocurrency regulation discussions. This resolution marks a pivotal moment in the ongoing debate surrounding the legal classification of crypto assets.
Ripple’s Chief Legal Officer, Stuart Alderoty, announced the conclusion on social media, expressing relief and anticipation for a return to business-as-usual. The SEC’s withdrawal of its appeal against the 2023 ruling—which declared XRP sales on public exchanges were not securities—was mirrored by Ripple's withdrawal of its own appeal concerning institutional XRP sales deemed securities violations. Both parties will cover their own legal fees.
The settlement solidifies the $125 million penalty initially determined by Judge Analisa Torres. This sum will be distributed with $50 million going to the U.S. Treasury and the remaining $75 million—held in escrow since June—returned to Ripple. A permanent injunction remains, however, preventing Ripple from conducting institutional XRP sales without adhering to securities laws. The initial lawsuit, filed in December 2020, accused Ripple of raising $1.3 billion through unregistered securities offerings—a claim Ripple consistently contested. Judge Torres's 2023 ruling partially favored the SEC, finding certain XRP sales to institutional investors constituted securities while others did not.
The abrupt shift in the SEC’s stance is widely attributed to the political changes following President Donald Trump's return to office and subsequent appointments at the SEC. Under the new Chair, Paul Atkins, the agency has reportedly withdrawn from numerous crypto-related enforcement actions and investigations in recent months. While Ripple CEO Brad Garlinghouse confirmed a June agreement to end appeals, negotiations to lessen the financial penalties proved unsuccessful. Market observers link this outcome to the SEC’s softer approach in other high-profile cases involving companies such as Coinbase and Kraken. This resolution is interpreted by many within the cryptocurrency industry as a significant turning point in Washington's regulatory approach.
Following the announcement, XRP experienced a dramatic surge. The price jumped 13%, with a 24-hour trading volume exceeding $9.5 billion—more than a 100% increase from the preceding day. Seven-day data shows an approximate 14% price increase, indicating renewed investor confidence stemming from the removal of regulatory uncertainty surrounding Ripple. Analysts cite this heightened activity as a clear sign of the market's positive response to the legal clarity achieved.
