What Happened
On August 7, 2025, both the U.S. Securities and Exchange Commission (SEC) and Ripple Labs filed a Joint Stipulation of Dismissal with the U.S. Court of Appeals for the Second Circuit, effectively ending both the SEC’s appeal and Ripple’s cross-appeal.
The 2023 district court ruling by Judge Analisa Torres remains in effect, which found that sales of XRP on public exchanges are not securities, while institutional sales are. Ripple was also ordered to pay a $125 million civil penalty, which is now being transferred to the U.S. Treasury.
As part of the joint dismissal, each party agreed to bear its own legal costs and fees.
Ripple’s Chief Legal Officer, Stuart Alderoty, shared on X (formerly Twitter):
> “The end… and now back to business.”
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Implications
This dismissal brings a formal close to one of the longest and most-watched crypto enforcement cases in U.S. history.
XRP reacted positively, with prices rallying in the wake of the news, reflecting renewed market optimism.
The outcome provides more regulatory clarity for the crypto sector. Ripple, with the major litigation behind it, now has a clearer path forward—though bound by the remaining injunction on institutional XRP sales.
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Summary Table
Element Status/Outcome
Appeal Status Both SEC and Ripple withdrawn (joint dismissal)
District Ruling Remains in force (public sales: not securities; institutional: yes)
Penalty $125 million to be transferred to U.S. Treasury
Legal Costs Each party pays its own
Market Reaction XRP price rose, investor sentiment improved
