
Key Points
- XRP Lawsuit Ends After 4 Years With $125M Ripple Penalty
- $125M fine and sales injunction remain in effect
- XRP jumped 5% within an hour of the news
- Legal battle ends without changes to earlier ruling
The multi-year legal fight between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has officially ended. On August 7, both parties filed a Joint Stipulation of Dismissal in the U.S. Court of Appeals for the Second Circuit.
๐จ BREAKING NEWS:
RIPPLE CEO SAYS: โRIPPLE IS DROPPING OUR CROSS APPEAL, AND THE SEC IS EXPECTED TO DROP THEIR APPEAL.
WEโRE CLOSING THIS CHAPTER ONCE AND FOR ALL!โ
IT IS OVER!!!! ๐ฅณ๐ฅ๐๐ผ #XRP pic.twitter.com/Srp4nGQ4rm
โ ๐๐ถ๐ฎ๐ต๐ฒ๐ฎ (@_Crypto_Barbie) June 27, 2025
This filing confirms that both Ripple and the SEC are dropping their appeals, and the case is now closed.
The SEC had filed its appeal under case number 24-2648, challenging aspects of the 2023 ruling that went against the agency. Ripple, in response, filed a cross-appeal (24-2705), contesting the penalties and injunction it received.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The parties have filed a Joint Dismissal of the Appeals. The case is over. pic.twitter.com/QMATRLnxnS
โ James K. Filan ๐บ๐ธ๐ฎ๐ช (@FilanLaw) August 7, 2025
But now, both parties have agreed to walk away, with the filing stating that each side will cover its own legal costs and attorney fees.
This move puts an end to one of the most closely watched crypto legal battles in history. You can explore a full timeline of the case in our Ripple XRP lawsuit deep dive.
Judge Analisa Torres ruled in 2023 that Rippleโs institutional XRP sales violated securities laws, but programmatic and secondary market sales did not.
That partial win for Ripple changed how many in the crypto world viewed token sales. And although both Ripple and the SEC had reasons to appeal, this week’s filing officially shuts the door on further litigation, at least for now.
Ripple vs SEC is over
The SEC officially Announces The Joint Stipulation to Dismiss Appeals, Resolving Civil Enforcement Action Against @Ripple and Two of Its Executives @bgarlinghouse and @chrislarsensf ๐๐บ๐ธhttps://t.co/W5RiktZl9y pic.twitter.com/qM9aBq7Gvx
โ ๐๐ฎ๐ป๐ธXRP (@BankXRP) August 8, 2025
Rippleโs $125M Fine Will Stand, No Changes to Injunction
Earlier in 2025, Ripple attempted to negotiate a settlement with the SEC that would lower the $125 million penalty and possibly lift the ban on institutional XRP sales. The SEC seemed open to talks, but Judge Torres rejected the proposed resolution in June, reinforcing her original judgment.
This left Ripple with few options. Now that the appeals are dismissed, the original ruling stands. Ripple must pay the $125 million fine, which has been held in escrow since the ruling. That money will now be transferred to the U.S. Treasury.
๐จBREAKING NEWS :
YUP IT’S OVERThe SEC Just Dropped Their Appeal Against Ripple
This Isn’t Speculation –
It’s Official Court Record : Case 24-2648 (L) Filed August 7, 2025No Fine,
No Settlement,
No Admission Of GuiltRipple Didnโt Back Down They Stood Tall
XRP Isโฆ pic.twitter.com/MM7CALirAW
โ GP Q (@argosaki) August 8, 2025
More importantly, Ripple remains barred from selling XRP directly to institutional investors unless those sales comply with U.S. securities laws. That means Ripple must either register XRP offerings with the SEC or find a legal workaround to continue institutional sales.
The SEC, for its part, does not gain the sweeping victory it had hoped for. The ruling from Judge Torres clearly stated that programmatic sales and secondary transactions of XRP are not securities, limiting the SECโs ability to regulate broader XRP markets.
This legal clarity will likely impact Ripple’s future strategic movesโincluding its potential Ripple IPO and XRP market influence.
Still, both sides can claim partial wins. Ripple avoids broader labeling of XRP as a security, while the SEC retains a strong enforcement precedent for direct institutional token sales.
Source : X – Techtoken
XRP Price Spikes as Market Breathes a Sigh of Relief
Crypto traders reacted quickly to the news. Within an hour of the filing, XRP jumped by 5%, showing strong signs of relief across the market.
While XRP had previously reached an all-time high in late July, it faced a sharp correction after, as investors feared further legal roadblocks. Now, with the XRP lawsuit officially over, some of that uncertainty has cleared, helping XRP regain short-term momentum.
Although the price movement may be temporary, the end of the case removes a massive cloud of doubt hanging over Ripple and XRP. Investors and developers can now operate with more clarity regarding the tokenโs legal status in the U.S.
XRP Price Chart. Source: Techtoken
Still, Ripple faces limits. Without the ability to make unregistered institutional sales, its growth in traditional finance sectors may be slower. The company will likely now focus more on programmatic partnerships and global markets where XRPโs legal status is less contested.
Market analysts are also watching how the Bitcoin and Ripple liquidity correlation plays out post-lawsuit, especially in the context of overall market recovery and new capital inflows.
What This Means for the Future of Crypto Enforcement
The XRP lawsuit was seen as a test case for how the SEC might treat other crypto tokens. The outcome offers a blueprint that could be used in future legal battles between the SEC and other crypto firms.
Judge Torresโ ruling created a legal gray zone: while direct institutional sales can be deemed securities, open-market or retail sales may not be. That precedent now stands, and no higher court will review or overturn it, at least in the context of Ripple.
Other crypto firms facing SEC scrutiny may now look to this case as a guide, structuring their token offerings more carefully to avoid being classified as securities.
Meanwhile, macroeconomic conditions, like the potential Fed rate cut warning to crypto, may also influence how regulators handle token-related enforcement, especially if liquidity continues to tighten in global markets.
At the same time, the SEC has proven that it can impose large financial penalties and force behavior changes even when it loses part of a case. That may encourage other companies to settle early rather than fight in court for years.
Crypto exchanges, particularly those dealing in high-risk tokens, are also re-evaluating their listings in light of recent legal actions, like the recent Memefi delisting by Binance, signaling tighter compliance measures ahead.
For Ripple, the ruling allows the company to move forward with a clear understanding of where the legal lines are drawn. And for XRP holders, the end of this case removes years of legal risk, which could help restore confidence in the token over time.