09.08.2025 01:43

The protracted legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs, concerning the classification of the XRP token, has finally concluded. A joint decision to withdraw all appeals, granted by the Second Circuit Court of Appeals on Thursday, marks the definitive end of nearly five years of litigation. This agreement sees both parties abandoning their appeals, each covering their own legal expenses.

This resolution solidifies a landmark ruling handed down in July 2023 by New York federal judge Analisa Torres. Her decision, now unchallenged, partially classified XRP tokens. While institutional sales of XRP were deemed unregistered securities, sales on public exchanges were not. This nuanced judgment resulted in Ripple paying a $125 million fine to the SEC, a considerable reduction from the agency's initial $2 billion demand.

The SEC's initial lawsuit, filed in late 2020, alleged that Ripple had illegally sold XRP as an unregistered security. The subsequent appeal followed Judge Torres' controversial ruling, prompting significant uncertainty within the cryptocurrency market. The withdrawal of both appeals effectively ends this regulatory uncertainty.

The impact on the XRP market has been dramatic, with its price experiencing a near-99% surge following news of the settlement. This significant price increase reflects investor optimism and a renewed confidence in the future of XRP, fueled by the legal certainty achieved through the joint withdrawal of appeals from internet sources.