The long-standing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs officially concluded when both parties notified the Second Circuit Court of Appeals that they would voluntarily dismiss their appeals concerning a 2023 ruling in the case. The SEC initially filed a lawsuit against Ripple in late 2020, alleging that the company violated securities laws through the sales of its cryptocurrency, XRP.
On August 7, 2025, it was reported that both the SEC and Ripple agreed to bear their own costs as part of their mutual decision to end the litigation. This agreement marks a significant milestone in a legal journey that began during Donald Trump’s presidency.
In 2023, a district judge ruled that Ripple’s activities involving XRP could constitute a violation of securities laws when the token was offered to institutional investors. Following that ruling, the SEC filed an appeal in 2024, while Ripple sought to maintain its argument by cross-appealing.
However, both sides reached an agreement to drop their appeals in June 2025. Ripple’s CEO, Brad Garlinghouse, stated that this decision was pivotal, allowing the company to focus on its business without the cloud of ongoing litigation. The penalties established by District Judge Analisa Torres remained in place, including a $125 million fine against Ripple and a permanent injunction against further violations of securities laws.
Moreover, the resolution of this case coincides with a broader shift in regulatory approaches towards cryptocurrencies, particularly following changes in leadership at the SEC after Donald Trump resumed office. The SEC has since scaled back a number of other crypto-related cases and investigations, setting a new tone for how such matters may be handled in the future.
Following the announcement of the dismissal, XRP’s market performance reflected optimism, with the token spiking by approximately 5%. As of the latest updates, it was trading around $3.27.
This resolution not only brings closure to a significant chapter in cryptocurrency regulation but also signals potential implications for other ongoing cases involving the SEC and digital assets.
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