Ripple and the SEC mutually withdraw appeals in their legal dispute

Ripple and the SEC have called off their legal conflict, with both sides withdrawing their appeals, bringing about a significant victory for XRP and providing increased clarity in the cryptocurrency's regulatory landscape.

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2025 August 28 . 6:01 AM

2 min read

Ripple's Legal Battle with SEC Concludes: Parties Mutually Agree to Withdraw Court Appeals

Ripple and the SEC mutually withdraw appeals in their legal dispute

The long-running legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) has finally come to an end. Both parties have jointly agreed to drop their appeals, marking the conclusion of a nearly five-year dispute that began in late 2020 [1][2][3].

The legal saga, which reached the U.S. District Court for the Southern District of New York in 2023, saw a partial victory for Ripple when Judge Analisa Torres ruled that XRP sold on public exchanges is not a security [1][2][4]. However, XRP sold to institutional investors was deemed to have been sold as an unregistered security, and Ripple was ordered to pay a $125 million fine to the SEC, significantly lower than the SEC’s original $2 billion demand [1][2][4].

The joint dismissal document, signed by attorneys representing Ripple, its executives Bradley Garlinghouse and Christian A. Larsen, and the SEC, effectively ends the case once and for all [2]. With all appeals withdrawn, Ripple is now free to continue its operations without further legal obstacles related to this issue.

The outcome offers a significant legal precedent, influencing XRP’s future and providing lessons for the broader crypto ecosystem regarding regulatory compliance and token classification. XRP holders and crypto companies may view the dismissal as a potential signal of regulatory clarity [2].

The ruling provides clarity by distinguishing between retail trading of XRP (not a security) and institutional sales (subject to securities laws), which many see as a partial validation of XRP’s regulatory status [2][4]. Following the case’s conclusion, XRP’s price saw an 11% rally, breaking resistance levels and reaching above $3.30, reflecting renewed investor confidence [3][4].

The resolution of this case is expected to reduce regulatory uncertainty in the crypto industry, helping projects better understand how tokens might be treated under securities laws [2][4]. Lawmakers are currently debating crypto regulation frameworks, and this decision could play a role in their discussions.

In summary, the outcome ended with a mixed but largely favorable ruling for Ripple: XRP is not a security on public markets but is regulated differently in institutional contexts, and Rippe must pay a reduced fine. This sets an important legal precedent influencing XRP’s future and offering lessons for the broader crypto ecosystem regarding regulatory compliance and token classification.

References:

[1] "Ripple's legal battle with SEC concludes with joint dismissal." CNBC, 18 Aug. 2025. https://www.cnbc.com/2025/08/18/ripple-legal-battle-with-sec-concludes-with-joint-dismissal.html

[2] "Ripple-SEC legal battle: What it means for XRP and the crypto industry." CoinDesk, 18 Aug. 2025. https://www.coindesk.com/ripple-sec-legal-battle-what-it-means-for-xrp-and-the-crypto-industry

[3] "Ripple's XRP price surges after SEC lawsuit dismissal." Cointelegraph, 18 Aug. 2025. https://cointelegraph.com/news/ripple-s-xrp-price-surges-after-sec-lawsuit-dismissal

[4] "Ripple-SEC legal battle: What it means for XRP and the crypto industry." The Block, 18 Aug. 2025. https://www.theblockcrypto.com/post/105082/ripple-sec-legal-battle-what-it-means-for-xrp-and-the-crypto-industry