The joint dismissal of appeals between Ripple and the U.S. SEC, finalized in June 2025, marks the end of a nearly five-year legal battle over XRP. This resolution is a game-changer for Ripple, XRP, and DeFi. Here's a concise breakdown:
Case Closure: The SEC’s 2020 lawsuit claimed Ripple raised $1.3B through unregistered XRP sales. A 2023 ruling clarified that XRP programmatic sales (to retail on exchanges) aren’t securities, but $728M in institutional sales were, leading to a $125M fine and an injunction. Both parties dropped appeals, accepting the ruling.
Impact on XRP: Legal clarity that XRP isn’t a security on public markets has driven its price to ~$2.50-$3.00, with XRP futures and ETF filings (e.g., Bitwise, 21Shares) signaling institutional interest.
DeFi Boost: The precedent protects other cryptocurrencies from securities classification in secondary markets, fostering DeFi innovation. Ripple’s focus on RLUSD stablecoin, XRPL smart contract upgrades, and partnerships with 30+ central banks positions XRP as a DeFi and cross-border payment leader.
Regulatory Shift: A softer SEC stance under new leadership and pro-crypto U.S. policies create a favorable environment for DeFi growth.
This marks a new chapter for Ripple to expand XRP’s role in DeFi, though compliance and market volatility remain challenges.