The long and closely watched legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has finally reached its conclusion. On August 2025, both Ripple and the SEC agreed to drop their appeals of the 2023 ruling, officially ending a legal fight that began all the way back in December 2020. This marks a historic moment not just for Ripple, but for the entire cryptocurrency industry.
The Origins of the Case
In 2020, the SEC filed a lawsuit against Ripple Labs, accusing the company of conducting an unregistered securities offering by selling its cryptocurrency token, XRP. According to the SEC, Ripple had raised over $1.3 billion by selling XRP to investors without properly registering the asset as a security — a requirement under U.S. law for most investment products.
Ripple, on the other hand, argued that XRP is not a security but a digital currency similar to Bitcoin or Ethereum, and therefore should not fall under SEC regulation.
Years of Legal Back-and-Forth
The case quickly became a high-profile legal battle, drawing attention from the entire crypto industry, regulators, legal experts, and investors alike. Over the next several years, Ripple and the SEC exchanged legal blows, presenting evidence, arguing over regulatory definitions, and debating whether XRP sales violated U.S. securities laws.
The case went beyond Ripple. Many in the crypto space viewed the outcome as a potential precedent for how U.S. regulators might treat other cryptocurrencies and blockchain projects.
The 2023 Ruling
In a pivotal moment, a U.S. federal judge ruled in 2023 that while Ripple had indeed violated securities laws in some of its direct institutional sales of XRP, its programmatic sales and sales on secondary markets (like exchanges) did not qualify as securities transactions.
This partial win for Ripple was celebrated by many in the crypto industry, as it provided clarity on how digital tokens could be sold without necessarily falling under securities laws.
However, both Ripple and the SEC filed appeals — Ripple sought to challenge the part of the ruling that found some violations, while the SEC aimed to contest the parts that cleared Ripple of wrongdoing in secondary market sales.
The Settlement in 2025
Fast forward to August 2025 — both Ripple and the SEC agreed to drop their appeals. As part of the settlement, each side will pay its own legal fees, and the 2023 ruling will stand without further challenge.
With this, the case is officially closed.
What This Means for Ripple and XRP
This settlement gives Ripple much-needed legal clarity and removes the uncertainty that has hovered over the company and its token for nearly four years. XRP can now move forward in the U.S. market without the constant shadow of regulatory risk.
Ripple is now better positioned to expand its global payment network and grow its institutional partnerships without the weight of ongoing litigation.
A Big Moment for Crypto
This case has been one of the most important legal battles in crypto history. It highlighted the ongoing lack of regulatory clarity in the U.S. and demonstrated the need for updated legal frameworks that fit the unique nature of blockchain technology.
While the SEC has pursued other cases against crypto companies since then, the Ripple case was different — it was the first major test of how courts would interpret the use and sale of digital tokens under securities law.
Conclusions:
With the Ripple vs. SEC lawsuit finally over, the crypto industry breathes a sigh of relief. The outcome isn’t just a win for Ripple — it’s a signal that clearer rules and fair regulatory treatment are possible.
As the crypto space continues to evolve, this case will be remembered as a turning point. And for Ripple, it’s a chance to finally focus on building — not battling.