08.08.2025 16:52

The protracted legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs has concluded. A joint motion to dismiss appeals, filed by both parties with the Second Circuit Appeals Court, effectively ends years of litigation concerning the classification of XRP. Each party will cover their own legal costs, as stipulated in the court filing.

Ripple's chief legal officer, Stuart Alderoty, confirmed the dismissal on X (formerly Twitter), declaring the case closed and signaling a return to business as usual. This announcement follows a recent SEC vote authorizing the dismissal of their appeal against the July 2023 ruling by a federal judge in New York.

The final ruling, issued by Judge Analisa Torres, draws a distinction between XRP sales. While XRP sold on public exchanges was not deemed a security, institutional sales of the token were categorized as unregistered securities, resulting in a $125 million fine levied against Ripple—significantly less than the SEC's initial $2 billion demand. This decision, following the SEC's appeal and Ripple's subsequent cross-appeal, now stands unchallenged.

The SEC's decision to drop its appeal was widely anticipated. This action follows a broader trend of the SEC abandoning several cases against cryptocurrency firms, a shift that coincided with the current administration's stated commitment to curtailing aggressive regulatory enforcement in the cryptocurrency sector. The case, originally filed during the previous administration, marks the conclusion of a significant chapter in the ongoing regulatory scrutiny of the cryptocurrency industry.