The Ripple Vs SEC lawsuit officially ends after both parties dropped their appeals.
Judge Torres’ 2023 mixed ruling is now final and binding.
Ripple will pay $125 million in fines, far below the SEC’s $2 billion demand.
The SEC has begun retreating from crypto enforcement under Trump’s current term.
XRP’s price surged nearly 99% in 2025, showing investor confidence post-settlement.
According to court documents filed on Thursday, the Second Circuit Court of Appeals acknowledged the joint dismissal from both Ripple and the SEC.
Each party has agreed to bear its own legal costs and attorney fees, marking the formal end of the legal appeals process.
Stuart Alderoty, Ripple’s Chief Legal Officer, said that he’s glad the years-long battle is finally over and now everyone can move on.
Source: X (@s_alderoty)
The SEC initially alleged that Ripple’s XRP sales constituted unregistered securities offerings, violating federal securities laws.
The case drew significant attention across the crypto industry, sparking debates about regulatory clarity in the U.S. digital asset sector.
Ripple pushed back, arguing that XRP is a currency, not a security, and therefore should not be under the SEC’s jurisdiction.
In July 2023, U.S. District Judge Analisa Torres issued a split decision:
Public XRP sales (on exchanges) were ruled not securities.
Institutional XRP sales were deemed unregistered securities offerings.
This mixed outcome led to the SEC filing an appeal in October 2023, followed by Ripple submitting a cross-appeal.
Source: X (@FilanLaw)
However, both have now opted to drop their respective challenges, solidifying Judge Torres’ ruling as final.
In May 2025, the two parties reached a settlement and asked Judge Torres to:
Dissolve the injunction against Ripple.
Lower the financial penalty.
However, in June, Judge Torres declined these requests, stating that Ripple must continue to comply with federal securities laws regardless of any changes in SEC regulatory stance.
Despite seeking a $2 billion penalty, the SEC was ultimately awarded just $125 million in fines against Ripple.
While the agency pushed to increase the fine, the court held firm on the reduced amount.
The lawsuit was originally filed during Donald Trump’s first term, but his current administration has adopted a pro-crypto stance, vowing to reduce regulatory enforcement.
Since then, the SEC has withdrawn several lawsuits against blockchain firms, including Ripple’s.
A joint motion in April 2025 indicated that the appeals were likely to be dropped. This was confirmed in August 2025, officially closing the door on one of the most high-profile crypto legal battles in history.
The anticipation of a settlement and regulatory clarity has had a major impact on XRP’s price. According to CoinGecko:
XRP hit a 2025 low of $1.79 in April.
It surged to a high of $3.56 in July, marking a 99% increase.
At press time, XRP is trading at $3.31, up 10.6% in the past 24 hours.
Investors and market analysts alike see this legal closure as a bullish sign for XRP and the broader crypto industry.
The SEC claimed that Ripple’s sale of XRP constituted the sale of unregistered securities, violating U.S. securities laws.
Judge Torres ruled that XRP sold on public exchanges is not a security, while XRP sold to institutional investors was considered a security. This ruling stands as final after both appeals were dropped.
Ripple has been ordered to pay $125 million in penalties, significantly less than the $2 billion originally sought by the SEC.
The end of the Ripple Vs SEC case sets a precedent for how digital assets may be classified and regulated in the U.S., and is seen as a win for crypto innovation.
Based on the final ruling:
XRP sold on exchanges = Not a security
XRP sold to institutions = Security
This hybrid classification remains the current legal interpretation.
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