Key Highlights
- SEC and Ripple have jointly filed a Dismissal of the Appeals, marking the official end of the case
- This comes after Judge Torres rejected a proposed settlement in June
- XRP token soars more than 2% in an hour
The U.S. cryptocurrency industry reached a historic milestone today as the SEC and Ripple Labs formally ended their nearly five-year legal battle through a joint dismissal of all remaining appeals.
(Source: James K. Filan on X)
This conclusion to the high-profile case, which began in December 2020, came after both parties filed paperwork with the Second Circuit Court of Appeals on August 7, 2025.
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the development in a social media post. Many industry experts are calling this a watershed moment for crypto regulation in America. The resolution provides long-awaited clarity about the status of XRP while setting important precedents that could shape how digital assets are regulated moving forward.
Background of the SEC vs Ripple Case
The legal battle started when the SEC accused Ripple of conducting an unregistered securities offering worth $1.3 billion through sales of its XRP cryptocurrency.
At the heart of the dispute was whether XRP should be classified as a security under U.S. law, with the SEC applying the decades-old Howey Test to argue that investors relied on Ripple’s efforts for profits.
Ripple countered that XRP functioned as a currency and utility token rather than a security, setting up a fundamental clash over how existing securities laws should apply to emerging digital assets.
The case quickly became a bellwether for the entire cryptocurrency industry, with its outcome potentially affecting thousands of other digital tokens.
In this case, a pivotal moment came in July 2023 when District Judge Analisa Torres issued a nuanced ruling that partially favored both sides. She determined that while Ripple’s institutional sales of XRP violated securities laws, its programmatic sales to retail investors did not meet the criteria for securities transactions.
This distinction proved crucial, effectively establishing that the same cryptocurrency could have different legal classifications depending on how it was sold.
The ruling immediately impacted XRP’s market position, with several major exchanges relisting the token after having previously delisted it due to regulatory uncertainty.
The legal battle continued through multiple appeals and settlement attempts, including a failed effort earlier this year to resolve the case through a negotiated settlement.
Judge Torres rejected that proposed settlement in June 2025, criticizing both parties for attempting to bypass proper legal procedures. Her rejection extended the litigation for several more months before today’s final resolution. While Ripple must still comply with certain restrictions and pay a $125 million penalty, the dismissal of all appeals means Judge Torres’s 2023 ruling stands as precedent, providing valuable guidance for other cryptocurrency projects navigating U.S. regulations.
How Ripple Case End Will Benefit the Market?
Industry analysts are already expecting the major implications of this resolution. Many see it as validation that not all cryptocurrency transactions automatically qualify as securities offerings, potentially creating more room for innovation within the U.S. market.
Recently, SEC Chairman Paul Atkins said that most cryptocurrencies are not securities while speaking at the America First Policy Institute. The same day, he announced the launch of ‘Project Crypto’.
The outcome may also influence ongoing SEC cases against other major crypto firms, including Coinbase and Binance, where similar questions about asset classification remain central.
For Ripple specifically, the resolution removes a cloud that has hung over its business operations for years, allowing the company to focus on expanding its cross-border payment solutions without the constant threat of legal action.
Market reaction to the news has been positive, with XRP experiencing a noticeable price bump as traders factor in reduced regulatory risk.
According to CoinMarketCap, XRP has soared by 2% on an hourly chart, climbing in value to $3.31 with an impressive market capitalization of $197.46 billion.
Some cryptocurrency advocates are now speculating about the possibility of an XRP-focused ETF gaining approval, something that seemed unlikely while the SEC case remained unresolved.
The resolution also comes amid broader shifts in the U.S. regulatory environment, with the SEC under new leadership appearing to take a more measured approach to crypto enforcement compared to previous years.