The legal dispute between Ripple and the SEC has been a prominent event in the cryptocurrency world, with many closely monitoring its progress. Over four years ago, the U.S. Securities and Exchange Commission brought charges against Ripple Labs and its leadership, alleging they offered unregistered securities through the sale of XRP tokens, totaling $1.2 billion. The SEC’s claim that XRP should be classified as a security caused price volatility for the token. The wider crypto market also experienced some impact until the appeal was dismissed. However, the situation isn’t fully resolved until the court gives its approval to the SEC’s latest report.
Ripple vs SEC: Appeals Withdrawn, But Final Resolution Awaits
On August 7th, the Ripple vs SEC legal battle appeared to be nearing its conclusion as both sides jointly requested a dismissal of their respective appeals. Industry observers have interpreted this as the end of the legal proceedings, which began in December 2020.
Importantly, this dismissal came from both Ripple, who withdrew their cross-appeal, and the SEC, following an internal vote.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The parties have filed a Joint Dismissal of the Appeals. The case is over. pic.twitter.com/QMATRLnxnS
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 7, 2025
With the withdrawal of appeals, each party will be responsible for their own legal expenses. Ripple is set to pay $125 million, a significantly reduced figure from the original $2 billion. However, limitations on future XRP sales to institutional investors will remain in place.
It’s worth noting that despite this development, XRP has received official recognition as “not a security,” although the case is not formally closed.
Court Approval Needed to Officially Conclude Ripple Lawsuit After SEC Submits Status Report
While the XRP lawsuit is largely considered to be over, legal expert James K. Filan has shared a recent update. In a post on X, he revealed that the SEC submitted a status report on August 16th, providing the U.S. Second Circuit with an update on the case’s progress, as mandated on June 16th.
- Source: James K. Filan, SEC Status Report
The Ripple vs SEC lawsuit will formally conclude if the U.S. Second Circuit approves the joint request for dismissal. Comments from former SEC Chair Paul Atkins suggest this decision could be a pivotal moment for crypto regulations in the United States.
Following the approval, Ripple will pay the penalty for institutional sales and face requirements to register for future sales decisions.
Crypto community member Sherrie has pointed out that the status report was filed late. Additionally, she notes that the report was necessary because the Court of Appeals hasn’t yet formally approved the joint stipulation of dismissal.
- Source: Sherrie, Comments on Ripple vs SEC Lawsuit Updates
Sherrie suggests this wouldn’t have been necessary if the court had acted faster. She ultimately believes the case is now effectively over since “Ripple has their waiver and they can conduct business.”
Frequently Asked Questions (FAQs)
No, the case remains open until the U.S. Second Circuit approves the request for dismissal.
The lawsuit will be formally concluded when the U.S. Second Circuit court signs off on the joint stipulation of dismissal submitted by both Ripple and the SEC.
Yes, XRP has been officially classified as ‘not a security.’
Pooja Khardia
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section.
Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights.
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