Ripple-SEC Legal Drama Ends; XRP Skyrockets 13%

[Ben Graham]

Ripple Labs’ long-running legal fight with the US Securities and Exchange Commission (SEC) is officially over after both sides agreed to drop their appeals in the case.

According to reports, a joint filing on August 7 confirmed the decision to the 2nd Circuit Court of Appeals, ending a nearly five-year dispute that has shaped debate over how cryptocurrencies are regulated.

Back To Business

Ripple’s chief legal officer Stuart Alderoty said on social media the matter 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

Appeals Withdrawn, Penalties Finalized

Based on reports, the SEC has withdrawn its challenge to a 2023 ruling that XRP sales on public exchanges were not securities.

Ripple, in turn, dropped its own appeal on the finding that institutional sales of XRP violated securities laws. Both parties will shoulder their own legal expenses.

The case’s resolution finalizes $125 million in penalties first outlined by Judge Analisa Torres. Of that, $50 million will go to the US Treasury, while $75 million—held in escrow since June—will be returned to Ripple.

The ruling also leaves in place a permanent injunction stopping Ripple from making institutional XRP sales without following securities laws.

It can be recalled that the litigation started in December 2020 when the regulatory body charged Ripple with raising $1.3 billion from unregistered securities offerings.

Ripple protested innocence, claiming XRP is not a security. In July 2023, Judge Torres agreed with the SEC on “programmatic” sales to institutional buyers but decided such type of sales to retail purchasers were not deemed as “securities.”

Political Shift Shapes Outcome

The move to suspend appeals follows US President Donald Trump’s return to the White House and appointment of new bosses at the SEC.

According to reports, under the new chair, Paul Atkins, the agency has backed away from more than a dozen enforcement actions and investigations involving crypto firms in recent months.

Ripple CEO Brad Garlinghouse earlier said both parties had already agreed in June to put closure to their appeals, though negotiations to reduce the penalties failed.

Meanwhile, market observers say the outcome is a reflection of the SEC’s softened approach in other high-profile cases, including those involving Coinbase and Kraken.

For the crypto industry, this resolution is being viewed as a sign of changing tides in Washington’s stance when it comes to regulation.

XRP Sees Renewed Trading Activity

Following news of the case’s end, XRP shot up 13%, registering a 24-hour trading volume of $9.50 billion—an increase of more than 100% compared from the previous day. XRP’s price has been climbing by around 14% in the last seven days, latest data shows.

Analysts say the sharp spike in activity signals renewed investor confidence now that the legal cloud over Ripple has been cleared.

Featured image from Meta, chart from TradingView