The legal proceedings between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), which began in December 2020, concluded in March 2025. These proceedings became some of the most significant in the history of the cryptocurrency industry.
1. Decision from July 2023
Judge Analisa Torres ruled that the sale of XRP to retail investors through exchanges does not violate securities laws. However, direct sales of XRP to institutional investors totaling $728 million were found to be illegal, as they fell under the definition of investment contracts.
2. Fine and its subsequent reduction
In August 2024, Ripple was fined $125 million for institutional sales of XRP. Initially, the SEC sought a fine of $2 billion. In March 2025, the parties reached an agreement under which Ripple would pay only $50 million, with the remaining $75 million being returned to the company.
3. SEC's withdrawal of appeal
In March 2025, the SEC withdrew its appeal against Judge Torres' ruling, acknowledging that XRP sold on the secondary market is not a security. This was a significant victory for Ripple and the entire cryptocurrency community.
📌 Consequences and significance of the rulings
For Ripple: The company gained legal clarity and the ability to continue its development without threats from the SEC.
For the industry: The decision set a precedent confirming that not all cryptocurrencies are automatically considered securities, especially when sold on the secondary market.
For the SEC: The withdrawal of the appeal and the reduction of the fine indicate a more moderate approach by the regulator towards the cryptocurrency industry under new political conditions.
📝 Conclusion
The court rulings in the Ripple and XRP case brought significant clarity to the regulation of cryptocurrencies in the U.S. While institutional sales of XRP were deemed illegal, retail sales through exchanges do not fall under the definition of securities. This creates an important precedent for the entire digital asset industry.