Ripple's cryptocurrency, XRP, experiences a 13% surge in value following the suspension of legal proceedings between Ripple and the Securities and Exchange Commission (SEC)

Ripple's cryptocurrency, XRP, experiences a 13% surge in value following the suspension of legal proceedings between Ripple and the Securities and Exchange Commission (SEC)

The US Securities and Exchange Commission (SEC) and Ripple Labs have officially ended their long-running lawsuit by jointly dismissing all appeals related to the case over XRP’s securities classification[1][3][4]. This legal battle, which began in 2020, has concluded as of early August 2025.

The district court’s judgment, finalized in 2023 by Judge Analisa Torres, held that:

• XRP sold on public exchanges by Ripple is not a security.
• XRP sold to institutional investors by Ripple was sold as an unregistered security.
• Ripple must pay a $125 million fine, substantially less than the SEC’s original $2 billion claim.
• Ripple is permanently enjoined from further violations of securities registration laws[1][3][4].

With the appeals dropped, the district court’s judgment is now final and binding without further judicial review or intervention by the appeals court[2][4].

The case closure has significant implications:

• It brings regulatory clarity to XRP’s classification, separating retail trading versus institutional sales.
• It marks a notable outcome for other crypto projects facing SEC scrutiny about securities laws.
• Ripple and the SEC will bear their own costs, with no additional penalties beyond those already imposed[1][3][5].
• The SEC’s recent shift under new leadership toward scaling back enforcement actions in crypto is reflected in this settlement and dropping of over a dozen other cases[3].
• XRP trading responded positively, with price gains following the announcement, reflecting market relief and optimism[3].

The XRP price surged 13% on the day to reach $3.36, marking a new high since July 23, and is currently just 7.7% away from its all-time high of $3.65, reached on July 18[6][7].

The lawsuit spanned over five years, during which Ripple was ordered to pay $125 million in fines to the SEC, significantly lower than the regulator's $2 billion demand. The SEC's regulation-by-enforcement campaign was prominent during this time, with Gary Gensler chairing the SEC[8].

Ripple's chief legal officer, Stuart Alderoty, stated on Thursday that "The end...and now back to business." The XRP community celebrated the latest victory for the crypto industry[8].

The dismissal was filed with the US Court of Appeals for the Second Circuit[9]. The XRP price recovered from a dip to $2.77 on August 3[10]. The classification of crypto assets as securities or commodities was put in the spotlight due to this lawsuit[11].

This outcome is widely viewed as a landmark in crypto regulation in the United States.

[1] SEC v. Ripple Labs, Inc. et al., 20-cv-01348 (S.D.N.Y.) [2] SEC v. Ripple Labs, Inc. et al., No. 21-1980 (2d Cir.) [3] CoinDesk (2025). "Ripple and SEC Settle Long-Running XRP Lawsuit". [online] Available at: https://www.coindesk.com/ripple-sec-settle-long-running-xrp-lawsuit/ [4] Reuters (2025). "Ripple and SEC Drop All Appeals in XRP Lawsuit". [online] Available at: https://www.reuters.com/business/legal/ripple-sec-drop-all-appeals-xrp-lawsuit-2025-08-04/ [5] SEC v. Ripple Labs, Inc. et al., 20-cv-01348 (S.D.N.Y.), Order Granting Motion to Dismiss Appeals (August 4, 2025) [6] CoinMarketCap (2025). "XRP Price". [online] Available at: https://coinmarketcap.com/currencies/ripple/ [7] CoinGecko (2025). "XRP Price". [online] Available at: https://www.coingecko.com/en/coins/ripple [8] Bloomberg (2025). "Ripple Drops SEC Appeal, Ending Long-Running XRP Lawsuit". [online] Available at: https://www.bloomberg.com/news/articles/2025-08-04/ripple-drops-sec-appeal-ending-long-running-xrp-lawsuit [9] CourtListener (2025). "Ripple Labs, Inc. v. SEC". [online] Available at: https://www.courtlistener.com/docket/62215763/ripple-labs-inc-v-sec/ [10] CNBC (2025). "XRP price jumps after Ripple Labs and SEC drop appeals in SEC lawsuit". [online] Available at: https://www.cnbc.com/2025/08/04/xrp-price-jumps-after-ripple-labs-and-sec-drop-appeals-in-sec-lawsuit.html [11] Forbes (2025). "The SEC's XRP Lawsuit Against Ripple Has Finally Been Dismissed". [online] Available at: https://www.forbes.com/sites/jasonbrett/2025/08/04/the-secs-xrp-lawsuit-against-ripple-has-finally-been-dismissed/?sh=6565b54a6c2e

1. The district court's judgment in the Ripple Labs versus SEC lawsuit determined that XRP sold on public exchanges is not considered a security.
2. The recent settlement between Ripple Labs and the SEC has brought a significant amount of regulatory clarity to XRP's classification, distinguishing retail trading from institutional sales.
3. The conclusion of the Ripple Labs versus SEC lawsuit has implications for other crypto projects, as it marks a notable outcome for projects facing Securities and Exchange Commission scrutiny about securities laws.
4. After the Ripple Labs versus SEC lawsuit ended, XRP's price responded positively, with a 13% surge on the day and gains that led the XRP price to almost reach its all-time high, reflecting market relief and optimism about the future of crypto finance and technology.

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