Ripple and the SEC Bring an End to their 5-Year XRP Legal Dispute with an Unexpected Court Resolution
In a landmark decision, the long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) officially came to an end in early August 2025. Both parties jointly filed a stipulation to dismiss their appeals, effectively closing the five-year-long dispute.
The legal saga began on December 22, 2020, when the SEC filed a lawsuit against Ripple, accusing them of illegal securities sales. However, a partial ruling in July 2023 by Judge Analisa Torres brought some relief. While she concluded that XRP is not inherently a security, she found that Ripple had violated securities laws in sales to institutional investors. These sales were deemed to meet the definition of investment contracts under federal law.
Following the ruling, both sides prepared appeals that could have extended the legal battle for years. However, the joint dismissal filing under Federal Rule of Appellate Procedure 42(b)(1) has now removed this risk of further appellate rulings impacting the earlier court decision.
The settlement terms include a $125 million fine for Ripple, a permanent injunction against certain sales remaining in place, and both parties covering their own legal fees and costs without further claims. Ripple reportedly spent over $150 million defending against the allegations.
The market reaction to the dismissal was immediate and positive. XRP's price jumped over 10% shortly after the joint filing, briefly exceeding $3.30, its highest level in months. The cryptocurrency later traded at $3.34, reflecting a 12.34% daily gain and a 12.27% weekly increase.
This development marks the formal end to nearly five years of legal conflict in the XRP Lawsuit. With the legal uncertainty removed, Ripple is now free to focus on business expansion, and growing institutional and retail interest in XRP is expected.
The SEC's shift towards developing clearer cryptocurrency regulations rather than enforcement actions is also a positive sign for the industry. This regulatory clarity is expected to benefit Ripple and foster innovation while protecting investors.
In summary, the dismissal of the appeals in the XRP Lawsuit effectively ends years of legal uncertainty for XRP, removing a major regulatory overhang that previously constrained its market potential. The cryptocurrency industry eagerly awaits the next steps in this new era of regulatory clarity.
References: [1] CoinDesk (2023). Judge Rules XRP is Not a Security, But Ripple Violated Laws in Sales to Institutional Investors. [online] Available at: https://www.coindesk.com/business/2023/07/13/judge-rules-xrp-is-not-a-security-but-ripple-violated-laws-in-sales-to-institutional-investors/
[2] CoinDesk (2023). Ripple Moves to Dismiss SEC's XRP Lawsuit, Claims XRP is Not a Security. [online] Available at: https://www.coindesk.com/business/2023/06/14/ripple-moves-to-dismiss-secs-xrp-lawsuit-claims-xrp-is-not-a-security/
[3] CoinDesk (2025). Ripple and SEC Jointly Dismiss XRP Lawsuit Appeals, Ending Legal Battle. [online] Available at: https://www.coindesk.com/business/2025/08/03/ripple-and-sec-jointly-dismiss-xrp-lawsuit-appeals-ending-legal-battle/
[4] CoinDesk (2025). XRP Price Surges After Ripple and SEC Dismiss XRP Lawsuit Appeals. [online] Available at: https://www.coindesk.com/price/2025/08/03/xrp-price-surges-after-ripple-and-sec-dismiss-xrp-lawsuit-appeals/
[5] CoinDesk (2025). SEC Signals Shift Toward Cryptocurrency Regulatory Clarity Following XRP Lawsuit Dismissal. [online] Available at: https://www.coindesk.com/business/2025/08/04/sec-signals-shift-toward-cryptocurrency-regulatory-clarity-following-xrp-lawsuit-dismissal/
- The joint dismissal of the SEC's appeals in the XRP lawsuit has not only ended years of legal uncertainty for Ripple, but also signaled a positive shift in finance and technology sectors towards regulatory clarity for cryptocurrencies.
- With the legal battle concluded, Ripple, a key player in the business sector, can now focus on technology advancements and expanding their business, potentially attracting increased institutional and retail interest in XRP.
