- SEC and Ripple end appeals, resolving legal dispute.
- XRP lawsuit sets precedent for token classification.
- Possible changes in SEC’s approach to crypto regulation.
The SEC and Ripple Labs jointly ended their legal appeal on August 7, 2025, concluding the lawsuit over XRP sales without further challenges in the United States.
This resolution sets a significant legal precedent for token sales and may influence future regulatory strategies, driving XRP’s market price up by 5-9%.
The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have officially concluded their legal battle by jointly dismissing legal appeals, ending a prolonged lawsuit over XRP. The case’s final judgment serves as a significant precedent for future token classifications.
Involved parties include key figures Brad Garlinghouse, Chris Larsen, and Gary Gensler. Stuart Alderoty, Ripple’s Chief Legal Officer, announced the dismissal on social media, affirming the resolution. The move marks a pivotal moment in crypto regulation.
Following the case’s closure, XRP experienced a price surge of 5-9%. This outcome restores confidence in the market, reflecting positive investor sentiment. Ripple’s institutional sales remain classified as securities violations, unlike public sales.
The $125 million fine significantly reduced from the SEC’s initial demand, underscores the financial burden resolved. The closure may suggest a shift in SEC’s enforcement strategy, potentially easing pressures on other crypto assets.
No major institutional shifts have been reported post-case. However, the regulatory landscape may become clearer for cryptocurrencies, particularly Layer 1 tokens. XRP’s exchange activities increased without notable new DeFi activity.
Ripple’s lawsuit outcome highlights regulatory challenges and opportunities within the cryptocurrency sector. Future regulatory actions might follow the newly set legal precedent, potentially impacting financial, regulatory, or technological sectors. The SEC’s posture change indicates a strategic pivot in its handling of cryptocurrency cases.
“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.” – Stuart Alderoty, Chief Legal Officer, Ripple
