SEC and Ripple conclude appeals, finalizing a significant cryptocurrency legal battle as XRP prices surge
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In a significant development for the cryptocurrency industry, Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) have jointly dismissed their appeals, bringing an end to the nearly five-year legal dispute over the sale of XRP tokens.
The joint dismissal, filed with the U.S. Court of Appeals for the Second Circuit on August 7, 2025, signifies the lawsuit's formal closure. This decision upholds the July 2023 ruling by Judge Analisa Torres, which found that XRP sales to retail investors on secondary markets did not constitute securities transactions. However, some institutional sales were deemed securities transactions in violation of law.
As part of a June agreement, Ripple Labs agreed to pay a settlement fine of $125 million. This is significantly less than the initial $2 billion proposed by the SEC. With the dismissal, no further court proceedings on this matter will occur.
The 2023 ruling, which found public exchange sales of XRP were not securities while institutional sales were, will stand. This resolution removes prior regulatory uncertainty, facilitating broader market acceptance and integration of XRP in cross-border payments and other financial services.
However, a permanent injunction restricting Ripple’s future institutional sales of XRP remains in effect. This means that while XRP is officially recognized as not securities for retail sales on secondary markets, certain institutional sale types may still be restricted due to nuanced regulatory compliance.
The conclusion of the appeals process leaves the 2023 ruling intact, cementing a precedent likely to influence how regulators and courts assess the classification of crypto going forward. The dismissal also clears the way for the transfer of the penalty to the U.S. Treasury.
In October 2023, the SEC dropped its claims against Ripple Chief Executive Brad Garlinghouse and Executive Chairman Chris Larsen. Both Garlinghouse and Larsen had been accused of aiding and abetting Ripple's alleged unregistered securities sales.
The decision in 2023 was hailed as a partial victory for the crypto industry, though it left Ripple liable for its institutional sales. XRP, the world's third-largest crypto by market capitalization, saw a more than 10% jump in price over the past 24 hours to $3.31, reflecting the market's positive response to the legal resolution.
This settlement and joint dismissal mark a significant milestone in the regulation of cryptocurrencies, setting a precedent for future regulatory and legal matters. The clarification of XRP's regulatory status is expected to boost confidence in its adoption and trading, potentially paving the way for wider acceptance and integration of cryptocurrencies in the financial sector.
- The dismissal of appeals by Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) signifies a significant development in the cryptocurrency industry, particularly for stablecoins and tokens like XRP, as it clears regulatory uncertainty.
- The conclusion of the legal dispute between Ripple Labs and the SEC has influenced the future of crypto industry regulations, setting a precedent that may impact how securities classifications are determined in the realm of technology, finance, and commerce.
- In the crypto industry, technology is playing a key role in shaping the future of finance, with innovations like stablecoins and ICOs potentially benefiting from regulatory clarifications such as the one provided by the joint dismissal of the Ripple Labs and SEC appeals.
