Ripple and SEC End XRP Lawsuit; Ruling Represents Landmark
In one of the most closely watched legal cases in crypto, Ripple Labs and the SEC have formally resolved their dispute over XRP.
On Thursday, the Second Circuit Court of Appeals recognized the dismissal of the SEC’s appeal and Ripple’s cross-appeal, with both parties agreeing to bear their own legal costs and fees.
Stuart Alderoty, Chief Legal Officer of Ripple, confirmed the settlement on X:
“After the Commission’s vote today, the SEC and Ripple formally filed to terminate their appeals. This over, let’s now get back to work.”
A Case That Shaped Crypto Regulation
The SEC sued Ripple in December 2020, alleging the sale of unregistered securities via XRP. In July 2023, U.S. District Judge Analisa Torres delivered a mixed ruling:
- XRP sales on public exchanges → Not securities.
- Sales of XRP to institutional investors → Unregistered securities.
Ripple was ordered to pay $125 million in fines — significantly lower than the $2 billion initially sought by the SEC. The regulator quickly filed an appeal, and Ripple responded with a cross-appeal.
Why the Truce Happened
The settlement ends the appeals process, making Judge Torres’ ruling final. This resolution comes amid shifting political winds, as Donald Trump recently signaled easing regulatory crackdowns on crypto.
In recent months, the SEC has quietly dropped multiple enforcement cases against blockchain companies. Earlier in April, Ripple and the SEC filed a joint motion to pause their appeals, and by May, they had reached a tentative settlement. However, in June, a court refused Ripple’s request to reduce its penalty.
XRP Price Skyrockets
The settlement has fueled an XRP rally. According to CoinGecko, prices surged nearly 99% from April’s low of $1.79 to July’s high of $3.56. While XRP dipped below $3 briefly, it has since rebounded over 10% in the past 24 hours to $3.31.
What This Means for Crypto
The Ripple case could be a turning point for U.S. crypto regulation. By conceding that public exchange sales of XRP are not securities, the SEC may have set a precedent that impacts future disputes — potentially giving crypto firms more breathing room in the U.S. market.
As Alderoty stated, Ripple is now free to “get back to business,” and the crypto community is watching closely.
