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- •The SEC and Ripple have officially dropped all appeals, ending a nearly five-year legal battle over the classification of XRP sales.
- •Judge Torres’ 2023 ruling now stands as final, confirming that XRP sales on public exchanges are not securities, while institutional sales were unregistered securities.
- •The case’s resolution provides rare regulatory clarity, setting a precedent for how U.S. courts may treat token sales in the secondary market moving forward.
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After nearly five years of courtroom proceedings, the legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has reached its conclusion. The case, which centered around whether Ripple’s sale of XRP
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constituted securities violations, is now officially closed following a joint agreement to withdraw all remaining appeals. This marks the end of one of the most closely watched regulatory battles in the crypto space.
Joint Appeals Withdrawn Ahead of August 15 Deadline
In a brief filed on August 7, 2025, both Ripple and the SEC formally requested the Second Circuit Court of Appeals to dismiss their respective appeals. The court granted the request, with both parties agreeing to bear their own legal fees. Ripple’s chief legal officer, Stuart Alderoty, confirmed the news, stating, “The end… and now back to business”.
The decision follows the SEC’s internal vote to approve the dismissal, a move that many observers expected given recent signs from both parties. Back in April, the SEC and Ripple had filed a joint motion to pause their appeals. That pause, followed by a settlement in May and Ripple’s own withdrawal of its cross-appeal in June, hinted that the final resolution was nearing. By August, the only pending step was a formal filing from the SEC, something observers had pegged to occur by August 15, 2025. Though that date was never a binding legal deadline, it served as a critical checkpoint for the case’s progress.
Related: XRP SEC Legal Battle Final Deadline Nears August 15
Torres Ruling Now Stands as Final Judgment
With the withdrawal now completed, the district court ruling delivered by Judge Analisa Torres in July 2023 becomes the final and unchallenged judgment. According to her decision, XRP SEC Drops XRP Case sold to institutional investors by Ripple were classified as unregistered securities. However, XRP’s programmatic sales, those conducted on public exchanges, were found not to meet the legal definition of securities. This distinction had major implications for how crypto tokens are treated under U.S. securities law, especially in retail markets.
As part of the resolution, Ripple was ordered to pay a $125 million fine, significantly lower than the SEC’s original demand of $2 billion. Ripple has already placed the full amount in escrow. Judge Torres had also denied Ripple’s later motion to reduce the penalty or dissolve the injunction, maintaining that compliance with existing securities laws remains necessary regardless of changes in regulatory priorities.
Legal Closure Brings Industry Clarity
The end of this legal chapter is being seen as a turning point not just for Ripple, but for the crypto industry as a whole. With the ruling now standing, it sets a judicial precedent that differentiates between institutional token sales and secondary market activity. While the case does not create new legislation, it could influence future court interpretations and regulatory enforcement, especially for projects with similar token distributions.
Market reaction to the news was swift. XRP rose nearly 7% in the hours following the filing, reflecting investor sentiment around the clarity now established for the token’s legal status. Ripple CEO Brad Garlinghouse had earlier expressed his company’s intention to put the matter behind them and focus on building financial products based on what they call the “Internet of Value”.
Closing Thoughts
Now that the SEC has officially dropped the XRP case, Ripple can move forward without legal overhang, and the crypto industry gains a rare moment of regulatory clarity. For those considering whether to buy XRP, explore XRP wallets, or bridge to XRPL, the final ruling serves as a stable backdrop, one that could shape the regulatory narrative for years to come.
