Ripple and the SEC ended their legal dispute with a court-filed settlement agreement.
The settlement resolves both district and appellate cases tied to XRP’s classification.
Ripple maintained that XRP was not a security measure throughout the legal battle that began in 2020.
The SEC and Ripple Labs have officially ended their legal battle after an official settlement agreement. Filed in the U.S. District Court, the Southern District of New York, the deal concludes litigation first instituted in December 2020. The case concerned Ripple and its executives, Bradley Garlinghouse and Christian A. Larsen, and the issues of the classification of the XRP token and alleged unregistered securities offering.
The agreement also contains adjudication of appellate litigations in the U.S. Court of Appeals for the Second Circuit, and case numbers 24-2648 (L) and 24-2705 (XAP) indicate the entire proceedings of the litigations.
Details of the XRP Case and Legal Resolution
SEC initiated its first lawsuit against Ripple Labs and executives on 22nd December, 2020, claiming that the company raised over $1.3 billion from selling XRP as an unregistered security. Ripple challenged this classification, arguing that XRP is a digital currency that helps execute international payment settlements rather than being regarded as a security.
The settlement agreement formally concludes both the district and appellate suits. It indicates a joint decision by the two parties to avoid further litigation and settle the matter with a legal compromise. Although exact details of the financial penalties or business conditions remain confidential, the agreement formally indicates Ripple’s position and stops enforcement actions connected with the initial complaint.
The company’s legal department always defended its business model, which several stakeholders in the crypto-ecosystem supported. Many believe that the SEC's approach to regulation was unclear and could not have worked in the decentralised field of blockchain technology.
Market and Industry Response to the Ripple XRP Settlement
Ripple’s leadership, including CEO Brad Garlinghouse, has applauded the resolution, which they see as an opportunity to shift gears towards product innovation and the growth of their payments network. Throughout the case, XRP has been subject to price volatility, but the end of litigation may contribute to stabilising its market value and its adoption in cross-border financial services.
The settlement creates a precedent for how U.S. regulators should handle other cases of crypto-related enforcement. Industry watchers will use it to shape future guidance on the classification and regulation of digital assets. With the issue closed, Ripple seeks investor confidence and expansion in regulatory-friendly jurisdictions.
