In a landmark move for the cryptocurrency industry, Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC) have jointly agreed to end their appeals in the long-running XRP lawsuit, closing a legal battle that lasted more than four years.
The case started in December 2020, when the SEC filed a lawsuit against Ripple and its two top leaders, CEO Brad Garlinghouse and Executive Chairman Chris Larsen, alleging that the sale of XRP was an unregistered securities offering.
San Francisco-based blockchain payments company Ripple rejected the allegations, claiming that XRP is not a security, but a digital currency.
On Thursday, August 7, 2025, defense counsel James Filan posted on X that both parties had jointly dismissed their respective appeals in the Second Circuit Court of Appeals. This was after a vote by the SEC heads at the Commission, formally closing the lawsuit. As per the filing, SEC and Ripple will each bear their own costs.
The end of the case means Judge Analisa Torres’ July 2023 ruling, which determined that XRP is not a security when sold to the public, remains in place. Further, as per a settlement deal with SEC, Ripple had agreed to pay $50 million, a reduced settlement from the $125 million originally ordered.
XRP Surges as Lawsuit Ends, Fueling ETF Approval Hopes
XRP’s price jumped over 4% immediately after the announcement, trading around $3.36, up more than 13% in 24 hours, according to CoinMarketcap. Analysts say the ruling boosts the odds of a spot XRP exchange-traded fund (ETF) being approved. Bloomberg ETF analyst Eric Balchunas maintains a 95% approval chance this year.
Ripple’s Chief Legal Officer, Stuart Alderoty, called the outcome “the end” and signaled a return to business as usual for the company.
The closure of the case marks one of the most significant wins for a crypto firm in U.S. history, with ripples likely to be felt across the global digital asset market.
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