Ripple and the Securities and Exchange Commission (SEC) have jointly withdrawn their appeals, ending the lengthy legal battle over the status of XRP as a security or a non-security.
In a significant development for the cryptocurrency industry, the long-running legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) has come to an end. The case, which began in December 2020, officially concluded in August 2025 with a settlement in which Ripple agreed to pay a $125 million fine for violating securities laws in its past institutional sales of XRP.
Both parties, Ripple Labs, SEC, Bradley Garlinghouse, and Christian A. Larsen, have filed a Joint Stipulation of Dismissal. This joint dismissal was signed by attorneys representing all parties and was filed with the U.S. Court of Appeals for the Second Circuit. The dismissal applies to all appeals, including the SEC's primary appeal and Ripple's cross-appeal.
The district judge’s 2023 ruling, which partially ruled in Ripple’s favor, established that XRP is not a security when sold to retail buyers on exchanges. However, Ripple’s direct institutional sales were found to be unregistered securities offerings. This outcome set a critical legal precedent distinguishing between secondary market sales and direct institutional offerings under U.S. securities law.
The official end of the lawsuit means Ripple is cleared of any further federal litigation tied to XRP’s regulatory status—at least for now. This decision could influence how other tokens are treated under U.S. securities law, particularly as lawmakers debate crypto regulation frameworks.
The resolution significantly clarifies XRP’s regulatory status: XRP is not classified as a security for general public trading, thereby removing a major regulatory barrier for its use and listing on exchanges. Each party will bear its own legal costs and fees associated with the case.
This pivotal shift in U.S. crypto regulation offers a framework for other cryptocurrencies’ classification and reduces regulatory risk for XRP in the retail market while enforcing compliance on institutional token sales. The case's resolution marks a major victory for XRP holders and crypto companies watching from the sidelines.
[1] CoinDesk. (2023). Ripple Wins Partial Victory in SEC Lawsuit, XRP Not a Security in Secondary Sales. [online] Available at: https://www.coindesk.com/ripple-wins-partial-victory-in-sec-lawsuit-xrp-not-a-security-in-secondary-sales
[2] CoinDesk. (2025). Ripple and SEC Settle Lawsuit, XRP Classified as Not a Security in Secondary Sales. [online] Available at: https://www.coindesk.com/ripple-and-sec-settle-lawsuit-xrp-classified-as-not-a-security-in-secondary-sales
[3] CoinDesk. (2025). Ripple-SEC Settlement: What It Means for XRP and Crypto Regulation. [online] Available at: https://www.coindesk.com/ripple-sec-settlement-what-it-means-for-xrp-and-crypto-regulation
- The Ripple-SEC settlement of 2025 reclassified XRP as not a security in secondary sales, a decision that could impact the regulatory treatment of other tokens, particularly as lawmakers discuss crypto regulation frameworks.
- The 2023 district judge's ruling established that XRP is not a security when sold to retail buyers on exchanges, yet the same token's direct institutional sales were deemed unregistered securities offerings.
- The resolution of the Ripple-SEC lawsuit in 2025 removes a significant regulatory barrier for XRP's use and listing on exchanges and offers a framework for the classification of other cryptocurrencies, reducing regulatory risk for XRP in the retail market while enforcing compliance on institutional token sales.
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