XRP soars 12% as SEC and Ripple formally end legal dispute

The nearly five-year legal dispute between the U.S. Securities and Exchange Commission and Ripple Labs has come to an official close.

Summary

SEC and Ripple jointly dismissed appeals, ending the XRP lawsuit.
Ripple will pay $50M, with $75M of escrowed funds returned.
XRP’s programmatic sales remain classified as non-securities.

This follows a joint filing on Aug. 7 to dismiss appeals in the U.S. Court of Appeals for the Second Circuit. Ripple chief legal officer Stuart Alderoty confirmed the outcome in an Aug. 8 post on X, stating the case was over and the company could get “back to business.”

Following the Commission’s vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals.

The end…and now back to business. https://t.co/nVqthNcFOt

— Stuart Alderoty (@s_alderoty) August 7, 2025

Under the dismissal, the SEC withdrew its appeal of a 2023 ruling that XRP (XRP) sales on public exchanges were not securities. Ripple dropped its cross-appeal over the finding that institutional XRP sales violated securities laws. Each side will bear its legal costs.

The decision clears the way for $125 million held in escrow since June to be disbursed, $50 million to the U.S. Treasury as a penalty and $75 million returned to Ripple. A permanent injunction on institutional XRP sales remains in force.

From courtroom battle to final settlement

The SEC’s lawsuit, filed in December 2020, accused Ripple of raising $1.3 billion through unregistered securities sales of XRP. Ripple refuted the claims, claiming that XRP is not a security.

In July 2023, Judge Analisa Torres issued a split decision, holding that institutional sales satisfied the legal threshold under the Howey Test but programmatic sales to retail buyers were not securities. The decision was hailed as a partial win for Ripple and the crypto industry.

The case saw multiple appeals, settlement talks, and procedural setbacks before the joint dismissal. Ripple is not required to admit any wrongdoing as part of the resolution, and XRP’s classification for retail sales has not changed.

With similar enforcement retreats observed in cases against Coinbase and Kraken, the outcome is being seen as a regulatory milestone, reflecting a softer stance by the SEC under incoming chair Paul Atkins.

Following the news, XRP rose 12%, with 24-hour trading volume reaching $9.54 billion, up nearly 140% from the previous day, reflecting renewed market interest in the token.

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