SEC and Ripple End Legal War: What Happens to XRP Now?
A years-long legal struggle between Ripple Labs and the Securities and Exchange Commission is about to come to a close. Together, they have petitioned an appeals court to reject both the blockchain company’s cross-appeal and the regulator’s appeal. The Second Circuit Appeals Court acknowledged a joint dismissal of the SEC’s appeal and Ripple’s cross-appeal in the XRP dispute in a brief filing on Thursday. Each party shall bear costs and fees.
Following the Commission’s vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals. The end…and now back to business,
Ripple’s chief legal officer, Stuart Alderoty
Judge Rules: XRP Not a Security for Retail Traders
In late 2020, the SEC filed a lawsuit against Ripple in a federal court, alleging that the company was marketing the token XRP as an unregistered security. In July 2023, a federal judge issued a mixed decision, concluding that certain tokens might qualify as securities. The government had challenged this decision.
The ruling rendered by federal judge Analisa Torres of New York in 2023 will be definitive since the lawsuit’s appeals procedure has been dropped. Judge Torres decided that while the tokens Ripple issued to institutional investors were unregistered securities, the XRP the company traded on public exchanges did not fit the definition of a security. Later, she imposed fines on Ripple of $125 million, which was significantly less than the $2 billion the SEC had requested. Ripple cross-appealed the regulator’s October appeal, which was prompted by the fine and Judge Torres’ decision.
Ripple’s Legal Win Fuels XRP Rally to $3.56 Peak
According to CoinGecko data, the drive toward settlement has been a key driver of XRP’s current price surge, which has seen it rise about 99% from a 2025 bottom of $1.79 on April 9 to a peak of $3.56 on July 22. It is currently trading at $3.34, up 11.51% over the past day. During the same period, trading volume also increased by 189.7% to $11.84 billion.
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