The lengthy legal battle between the U.S. Securities and Exchange Commission and Ripple Labs has reached its conclusion. Both parties submitted a joint filing to the Second Circuit Court of Appeals, agreeing to withdraw their respective appeals and bringing closure to one of cryptocurrency’s most watched regulatory cases.
Five-Year Legal Battle Reaches Resolution
The dispute began in December 2020 when the SEC filed charges against Ripple Labs, alleging that XRP token sales constituted unregistered securities offerings. Ripple contested these claims, maintaining that XRP should be classified as a digital asset rather than a security. The case drew significant attention from both legal professionals and the broader cryptocurrency community throughout its duration.
In July 2023, U.S. District Judge Analisa Torres delivered a mixed verdict. Her ruling determined that Ripple had violated securities laws through XRP sales to institutional investors, but found that retail sales conducted through exchanges did not constitute securities violations. This decision was viewed as a partial victory for both sides, though it provided some clarity for the broader crypto market regarding secondary-market transactions.
🚨BREAKING: RIPPLE VS. SEC CASE IS OFFICIALLY OVER 🧨📜
Both sides just filed a Joint Dismissal of Appeals — the legal war is DONE.
No more delays. No more speculation. It’s game on for XRP. 🧵👇 pic.twitter.com/TTzAgugZjR
— Diana (@InvestWithD) August 7, 2025
Following the 2023 ruling, both parties filed appeals. The SEC sought to challenge the portion of the decision favoring retail sales, while Ripple filed a cross-appeal to defend its position. However, in June 2025, Ripple CEO Brad Garlinghouse announced the company’s decision to abandon its appeal, stating the organization wanted to focus on building the Internet of Value.
Final Settlement Terms and Market Response
With both appeals now formally withdrawn, the Second Circuit has confirmed the dismissal, with each party responsible for covering their own legal expenses. Judge Torres’ 2023 ruling now stands as the final decision in this landmark case.
Under the settlement terms, Ripple must pay a civil penalty of $125 million related to its institutional XRP sales. The company also faces a court injunction designed to prevent similar violations in the future. Despite these penalties, XRP trading on public exchanges can now continue without the legal uncertainty that has surrounded it for years.
The resolution did not result from a definitive appellate court decision, leaving some questions about digital asset classification unresolved. However, many legal experts believe Judge Torres’ ruling will serve as an important precedent for future cryptocurrency cases.
Market reaction was swift and positive. According to CoinMarketCap data, XRP’s price jumped 10% to $3.31 within 24 hours of the announcement. This surge reflects investor relief at the case’s conclusion and optimism about reduced regulatory uncertainty.
Legal professionals and cryptocurrency advocates welcomed the news. Attorney Bill Morgan characterized the resolution as the best development in years for the industry, emphasizing the importance of finally closing this chapter.
The Ripple case outcome may influence how U.S. regulators approach other cryptocurrency projects going forward. While the courtroom battle has ended, the precedent established by this case will likely continue shaping crypto policy discussions for years to come.
Regulatory Implications for Crypto Market
The case closure may provide some near-term regulatory clarity, though the mixed nature of the original ruling suggests ongoing uncertainty around digital asset classifications. Market participants should expect continued regulatory scrutiny as authorities refine their approach to cryptocurrency oversight.
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