XRP Lawsuit Over: Ripple and SEC Conclude 4-Year Legal Battle

The legal war between Ripple and the SEC has officially ended. With appeals dropped, XRP surges as hopes for an ETF intensify. Industry insiders see this as a major milestone for crypto regulation in the U.S.

SEC Ends XRP Lawsuit as Ripple Emerges with Legal Clarity

In a landmark development for the crypto space, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have agreed to end their legal battle over XRP. After more than four years of intense litigation, both parties have formally withdrawn their appeals—bringing closure to one of the most consequential cases in crypto history.

The lawsuit began in December 2020, when the SEC accused Ripple of selling XRP as an unregistered security. Ripple firmly denied the claim, arguing that XRP functions as a digital currency, not an investment contract.

On August 7, 2025, legal filings revealed that both Ripple and the SEC dropped their respective appeals. The decision followed an internal vote by the SEC’s top officials. Under the terms of the settlement, each side will cover its own legal costs.

Importantly, the July 2023 ruling by Judge Analisa Torres remains intact. Her decision stated that XRP is not a security when sold to the general public, although certain institutional sales did violate securities laws. Ripple agreed to pay a $50 million settlement—well below the initial $125 million sought by regulators.

XRP Price Rallies as ETF Speculation Grows

Following the announcement, XRP jumped more than 13% within 24 hours, reaching $3.36. The market welcomed the news, with analysts predicting broader implications for the entire digital asset space.

Bloomberg ETF expert Eric Balchunas now estimates a 95% chance of approval for a spot XRP ETF. He believes the case’s resolution removes a key regulatory hurdle, opening the door for institutional investment vehicles tied to XRP.

Ripple’s Chief Legal Officer Stuart Alderoty described the settlement as “the official end,” signaling that the company is ready to move forward without legal constraints.

The outcome is expected to influence other ongoing cases involving crypto regulation in the U.S., including those against major exchanges like Coinbase and Binance. Legal clarity around XRP could serve as a reference point in future regulatory actions.

Meanwhile, crypto advocates argue that the SEC must now provide clearer guidelines on how it classifies digital assets. This case has highlighted the need for regulatory reform and consistent legal standards across the industry.

The Ripple vs. SEC lawsuit may be over, but its impact is just beginning to unfold. XRP has regained momentum, and the chances of a U.S.-approved ETF have never looked stronger. For Ripple—and the broader crypto market—this marks the start of a new chapter.