The extended legal confrontation between Ripple Labs and the United States Securities and Exchange Commission (SEC) has concluded, with both parties consenting to withdraw their respective appeals.
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A formal submission to the 2nd Circuit Court of Appeals on August 7 verified this resolution, effectively ending a nearly five-year dispute that has significantly impacted the discussions surrounding cryptocurrency regulation.
Resuming Operations
Stuart Alderoty, Ripple’s chief legal officer, announced via social media that the case was “over,” and the company can now “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 Dropped, Penalties Defined
According to reports, the SEC has rescinded its challenge against a 2023 judgment stating that XRP sales on public cryptocurrency exchanges did not constitute securities offerings.
Conversely, Ripple has also withdrawn its appeal regarding the finding that its institutional XRP sales were in violation of securities regulations. Both parties will be responsible for their own legal fees.
This resolution finalizes the penalties amounting to $125 million, as initially stipulated by Judge Analisa Torres. Of this total, $50 million will be directed to the US Treasury, while the remaining $75 million, held in escrow since June, will be returned to Ripple.
The ruling also maintains a permanent injunction preventing Ripple from conducting institutional XRP sales without complying with securities laws.
The legal battle commenced in December 2020, when the SEC accused Ripple of generating $1.3 billion through unregistered securities offerings.
Ripple maintained its innocence, asserting that XRP is not a security. In July 2023, Judge Torres sided with the SEC concerning “programmatic” sales to institutional buyers but ruled that similar sales to retail investors were not considered “securities.”
Political Landscape Influences Outcome
The decision to suspend the appeals followed the return of US President Donald Trump to the White House and the subsequent appointment of new leadership at the SEC.
Sources indicate that under the leadership of the new chair, Paul Atkins, the agency has reduced its involvement in over a dozen enforcement actions and investigations involving cryptocurrency firms in recent months.
Ripple CEO Brad Garlinghouse previously stated that both parties had already agreed in June to finalize their appeals, although negotiations to reduce the penalties were unsuccessful.
Industry experts suggest that this outcome reflects the SEC’s increasingly lenient approach in other prominent cases, including those involving Coinbase and Kraken.
For the cryptocurrency sector, this resolution is seen as an indication of shifting attitudes in Washington regarding cryptocurrency regulation.
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Increased Trading Volume for XRP
Following the announcement of the case’s conclusion, XRP experienced a 13% surge in value, accompanied by a 24-hour trading volume of $9.50 billion—an increase exceeding 100% compared to the previous day. Recent data indicates that XRP’s price has risen by approximately 14% over the past week.
Analysts suggest that this significant increase in trading activity reflects renewed investor confidence now that the legal uncertainties surrounding Ripple have been resolved.
Featured image from Meta, chart from TradingView