Ripple and the SEC have mutually submitted appeals' dismissal following the conclusion of their legal battle.
The long-running legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. has finally come to an end. Both parties jointly dropped their appeals in August 2025, making the 2023 federal court ruling final [1][5].
In the initial ruling, Judge Analisa Torres stated that Ripple’s XRP token sales on public exchanges did not qualify as securities offerings. However, the court found that sales to institutional investors were unregistered securities sales, resulting in a fine of $125 million to Ripple [1][2][5].
The joint dismissal, signed by attorneys representing Ripple, its executives Bradley Garlinghouse and Christian A. Larsen, and the SEC, marks the end of legal uncertainties in this landmark case. The ruling establishes a critical distinction between secondary market trading of XRP (not securities) and institutional sales (considered securities), setting a legal precedent for how crypto tokens can be treated under U.S. securities law [5].
The conclusion of this case may ease regulatory uncertainty around crypto token offerings, potentially allowing companies like Ripple to raise capital with clearer guidelines. It could also influence SEC enforcement approaches in the industry [4][5].
The dismissal was filed with the U.S. Court of Appeals for the Second Circuit, with case numbers 24-2648(L) for the SEC's appeal and 24-2705(XAP) for Ripple's cross-appeal remaining relevant. The decision could signal regulatory clarity for XRP holders and crypto companies [6].
In summary, this ruling: - Confirms XRP on public exchanges is not a security. - Confirms institutional XRP sales were unregistered securities, resulting in a fine to Ripple. - Ends legal uncertainties in this landmark case. - Could herald more regulatory clarity and increase confidence in crypto capital raising [4][5].
References:
- Ripple Wins SEC Lawsuit, XRP is Not a Security
- Ripple Faces $2 Billion Fine in SEC Lawsuit
- Ripple and SEC Reach Settlement in Lawsuit
- Ripple-SEC Settlement Brings Clarity to Crypto Regulation
- Ripple-SEC Lawsuit Conclusion: What it Means for Crypto Regulation
- Ripple-SEC Lawsuit Dismissal Signals Regulatory Clarity for XRP
- The joint withdrawal of appeals by the SEC and Ripple Labs Inc. in 2025 reaffirms Ripple's XRP token sales on public exchanges as non-securities, as originally ruled in 2023.
- The court found that Ripple's institutional token sales, however, constituted unregistered securities sales, leading to a $125 million fine for the company.
- This landmark case, with its distinction between secondary market trading of XRP (not securities) and institutional sales (considered securities), could pave the way for more regulatory clarity in the crypto industry, positively influencing the approach of the SEC towards crypto token offerings.
