SEC and Ripple move toward lawsuit closure

TLDR

Table of Contents

Ripple and SEC filed a joint dismissal, signaling the lawsuit’s near end.
The firm will pay $125 million, much lower than the initial $2 billion.
XRP is recognized as “not a security,” with restrictions on future institutional sales.
The U.S. Second Circuit must approve the dismissal for the case to close.

On August 7, the ongoing Ripple vs SEC lawsuit, which has been active since December 2020, came close to a resolution. Both Ripple and the SEC filed a joint dismissal of their respective appeals. This move marks a significant step toward the end of the case, although a few procedural steps remain. Experts have widely acknowledged this as the near conclusion of the legal battle.

The dismissal, which followed Ripple’s withdrawal of its cross-appeal, was supported by the SEC after an internal vote. This agreement signals a shift in the case, but the final closure still depends on court approval. The lawsuit, which primarily dealt with whether Ripple’s XRP token should be classified as a security, continues to unfold with new developments.

Financial Settlement and Legal Costs

While both parties work toward resolving the case, the financial outcome has become clear. Ripple will pay $125 million in legal costs, a stark contrast to the initial $2 billion figure that had been suggested earlier in the legal process. Despite the substantial reduction in the penalty, Ripple still faces restrictions on its future institutional sales of XRP.

Ripple’s payment comes as part of the settlement deal, which was finalized with the joint filing of the dismissal. It also marks a significant change from earlier predictions regarding the severity of penalties. Meanwhile, the focus remains on ensuring compliance with regulations as Ripple continues to navigate the regulatory landscape.

SEC Updates Case Status to U.S. Second Circuit

Despite the lawsuit nearing its end, there has been one final procedural update. On August 16, former federal prosecutor James K. Filan revealed the SEC’s status report. This report was submitted to the U.S. Second Circuit, as part of a directive given on June 16. The status report outlines the progress of the case, including the joint dismissal agreement.

#XRPCommunity #SECGov v. #Ripple #XRP The @SECgov has filed a status report with the Court of Appeals noting that the parties have filed a Joint Stipulation of Dismissal of the appeals and that the stipulation remains pending and therefore awaiting approval by the Court. pic.twitter.com/X74wFRhswq
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 15, 2025

If the U.S. Second Circuit approves the dismissal, it will formally end the lawsuit. This decision would signal a significant moment for U.S. cryptocurrency regulations, as highlighted by SEC Chair Paul Atkins. However, Ripple still faces the requirement to register for future institutional XRP sales, with additional penalties for past sales yet to be paid. The final steps depend on the court’s approval of the joint dismissal.

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