SEC and Ripple Finalize Dismissal of Appeals Officially Closing XRP Case

The United States Securities and Exchange Commission along with Ripple Labs have agreed to drop their ongoing appeals in the extended legal dispute over XRP, marking the end of a significant chapter in cryptocurrency regulation. This joint decision came through a stipulation filed on August 7, 2025, in the US Court of Appeals for the Second Circuit, where both parties withdrew their challenges to a prior district court ruling. The move resolves one of the most watched enforcement actions in the crypto space, which began back in December 2020 when the SEC accused Ripple of conducting an unregistered securities offering through XRP sales.
That initial lawsuit targeted Ripple's institutional sales, claiming they violated securities laws by raising over a billion dollars without proper registration. In a landmark partial summary judgment in July 2023, Judge Analisa Torres of the Southern District of New York determined that while direct sales to institutions qualified as securities, programmatic sales on public exchanges and certain distributions did not. This split decision provided some regulatory clarity for the industry, as it distinguished between different types of token transactions in a way that influenced broader discussions on digital assets.
Following the ruling, the court issued a final judgment in August 2024, imposing a civil penalty of $125 million on Ripple and an injunction to prevent future violations of the Securities Act of 1933. The SEC then appealed aspects of the decision, seeking to overturn the finding that secondary market sales were not securities, while Ripple cross-appealed the liability for institutional sales. Both sides maintained their positions through much of the appellate process, but the recent stipulation dismisses these appeals with prejudice, meaning the SEC cannot refile on the same grounds.
The dismissal leaves the district court's judgment intact, ensuring Ripple pays the penalty and adheres to the injunction terms. The outcome stems from a vote by the SEC commissioners, reflecting a strategic choice to conclude the matter without further litigation. For Ripple executives Brad Garlinghouse and Christian Larsen, who were also named in the suit, this brings personal resolution as no additional penalties or actions remain pending.
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With the appeals now withdrawn, the Second Circuit Court is set to issue an order formally closing the appellate docket in the coming days. This step will shift focus back to the district court, where Ripple must fulfill the payment of the $125 million fine within the stipulated timeframe, typically 30 days from the judgment becoming final. Compliance with the injunction will be monitored, requiring Ripple to avoid any unregistered offerings in future operations.
Once the penalty is settled and all terms are met, the district court will administratively close the case, allowing the SEC to consider the enforcement action fully resolved. This closure removes a longstanding uncertainty for XRP holders and the wider crypto market, potentially fostering greater institutional adoption of the token. Market response has been positive, with XRP experiencing a price surge of around 10% in the 24 hours following the announcement, pushing its market cap higher amid renewed investor confidence.
The resolution sets a precedent that secondary sales on exchanges do not automatically constitute securities offerings, which could guide future SEC actions against other projects. For Ripple, this frees up resources to expand its payment solutions and stablecoin initiatives, including recent acquisitions aimed at handling a portion of global B2B payments.