Ripple's digital token, XRP, experiences a 13% surge in value after settling a legal dispute with the Securities and Exchange Commission (SEC)
The long-running legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) officially came to an end on August 7, 2025, with both parties filing a joint stipulation to dismiss their respective appeals in the Second Circuit Court. This marks the conclusion of a five-year-long lawsuit that has been closely observed in the crypto industry.
The lawsuit, which started in December 2020, involved Ripple Labs, two of its top executives (Brad Garlinghouse and Chris Larsen), and the SEC, who alleged that Ripple conducted an unregistered securities offering by selling XRP. The case became a battleground with appeals and counter appeals, costing millions in legal fees.
In 2023, New York federal judge Analisa Torres ruled that the XRP sold on public exchanges by Ripple did not meet the definition of a security, but the tokens sold to institutional investors were unregistered securities. As a result, Ripple was ordered to pay $125 million in fines to the SEC, which was significantly lower than the regulator's $2 billion demand.
The dismissal brings official closure to the lawsuit and solidifies a legal distinction between retail secondary market sales of XRP (not securities transactions) and direct institutional sales (securities transactions). This clarifies how XRP is treated under U.S. securities law, easing regulatory uncertainty for retail investors and exchanges.
The XRP price reacted positively to the dismissal, with an approximate 5% increase soon after the filing, trading around $3.27. The price surge reflects improved market sentiment from the legal resolution. XRP's price is currently just 7.7% away from its all-time high price of $3.65.
The conclusion of the lawsuit allows the SEC to shift focus from enforcement litigation to establishing clearer crypto regulations. This is expected to benefit the broader crypto industry by fostering innovation while protecting investors. The case’s closure coincides with legislative efforts like the Digital Asset Market Clarity Act (CLARITY Act), aimed at providing clearer frameworks for digital asset markets.
In summary, the dismissal confirms XRP’s non-security status in retail contexts, reduces a major source of uncertainty, positively influences XRP’s market value, and marks a regulatory pivot toward clearer crypto guidelines in the U.S.
The XRP "Army" celebrated the latest victory for the crypto industry on XRP's platform, with Ripple's chief legal officer, Stuart Alderoty, stating on Thursday that "The end...and now back to business."
[1] CoinDesk. (2025). Ripple and SEC Agree to Dismiss Appeals in Court Filing. [online] Available at: https://www.coindesk.com/business/2025/08/07/ripple-and-sec-agree-to-dismiss-appeals-in-court-filing/
[2] Yahoo Finance. (2025). XRP Price Surges 13% on Day Following Court Ruling. [online] Available at: https://finance.yahoo.com/news/xrp-price-surges-13-day-following-court-ruling-170000836.html
[3] Cointelegraph. (2025). Ripple Labs Fined $125 Million in SEC Settlement. [online] Available at: https://cointelegraph.com/news/ripple-labs-fined-125-million-in-sec-settlement
[4] Forbes. (2025). SEC vs. Ripple Labs Lawsuit: What Does The Dismissal Mean For XRP? [online] Available at: https://www.forbes.com/sites/jasonbloomberg/2025/08/08/sec-vs-ripple-labs-lawsuit-what-does-the-dismissal-mean-for-xrp/?sh=6b8c277a3f72
[5] CoinDesk. (2025). SEC Commissioner Hester Peirce Welcomes Ripple Lawsuit Dismissal. [online] Available at: https://www.coindesk.com/business/2025/08/08/sec-commissioner-hester-peirce-welcomes-ripple-lawsuit-dismissal/
- The legal victory for Ripple Labs in their lawsuit with the SEC signifies a significant step forward for the crypto industry, as it reinforces the potential for blockchain technology, including staking, DeFi, and trading, to thrive within a more clearly defined regulatory landscape.
- As the regulatory uncertainty surrounding XRP lessens, its price is expected to climb further, with speculation that it could soon reach its all-time high of $3.65, making it an attractive asset for investors in the crypto market.
- The dismissal of the SEC's case against Ripple Labs could prompt a shift in focus for the SEC, allowing them to focus on creating clearer guidelines for various crypto-related activities, such as staking, trading, and DeFi projects, ensuring continued innovation and investor protection in the industry.
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