TLDR
- Ripple and SEC settle XRP lawsuit with dismissal of appeals.
Ripple to pay $125 million fine despite case dismissal.
Court rules XRP is not a security in secondary market transactions.
Ripple’s legal victory marks a significant win for the crypto industry.
The long-running legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has officially come to an end. The U.S. Court of Appeals for the Second Circuit approved a joint motion to dismiss the appeals from both parties, confirming that the case will move into its final enforcement stage.
The dispute began in December 2020 when the SEC accused Ripple and its executives of conducting unregistered securities offerings through the sale of XRP, Ripple’s native cryptocurrency. This legal battle has been one of the most closely followed in the cryptocurrency industry, with significant implications for the regulation of digital assets in the U.S.
With the dismissal of the SEC’s appeal and Ripple’s cross-appeal, the case is now closed. However, the court’s earlier ruling, which found that XRP does not qualify as a security in secondary market transactions, still stands. This decision was pivotal, as it clarified that only certain institutional sales of XRP fall within the scope of securities regulations.
Ripple Agrees to $125 Million Fine
Despite the dismissal of the appeals, Ripple is still subject to a $125 million civil penalty imposed by the court. This fine was part of the settlement agreement, which resolved charges related to Ripple’s institutional sales of XRP. The fine serves as a reminder that even though Ripple triumphed in the legal battle, it still faces significant financial penalties.
Ripple CEO Brad Garlinghouse celebrated the outcome as a victory for Ripple and the broader cryptocurrency sector. He emphasized that the decision sets a crucial precedent for the regulation of digital assets in the U.S. and solidifies XRP’s position as a non-security in secondary market trades.
#XRPCommunity #SECGov v. #Ripple #XRP The Second Circuit has approved the Joint Stipulation of Dismissal. pic.twitter.com/v796dAtfiZ
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 22, 2025
The $125 million penalty is a substantial sum, but Ripple’s leadership believes it is a small price to pay for the long-term clarity provided by the court’s decision. Ripple has already started to plan its next steps for growth, including expanding the adoption of XRP for cross-border payments and remittances.
Legal and Regulatory Context
The case between Ripple and the SEC unfolded amid increasing regulatory scrutiny of digital assets in the U.S., especially under former SEC Chair Gary Gensler’s leadership. The SEC’s aggressive stance toward crypto regulation led to several lawsuits, with Ripple being one of the highest-profile targets.
However, the political landscape shifted with the transition to the Biden administration, which has shown more openness toward crypto innovation.
Additionally, there has been a growing recognition that clear regulatory frameworks for digital assets are necessary to foster industry growth and prevent legal uncertainty. The SEC’s withdrawal of its appeal reflects this changing sentiment, marking a turning point for both Ripple and the crypto sector as a whole.
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