1. First instance ruling in 20

• In July 2023, Judge Analisa Torres from the Southern District Court of New York issued a key ruling:

• XRP sold on public exchanges (retail/programmatic sales) is not considered a security according to the Howey Test assessment.

• Conversely, XRP sold to institutional investors violates securities law due to lack of registration.

2. Fine Ripple $125 million (2024)

• In August 2024, the court issued a final ruling: Ripple must pay a $125 million fine and the injunction remains in place for XRP transactions for institutional investors.

3. Efforts to reduce the sentence failed (2025)

• In March 2025, Ripple and SEC proposed a settlement to reduce the fine to $50 million, but this request was denied due to lack of a "specific case" to consider a reduction.

• Subsequently, Judge Torres denied the request to lift the injunction and reduce the fine.

4. Case closure: No appeal (August 2025)

• On August 7, 2025, both Ripple and SEC officially withdrew their appeals at the Second Circuit Court, concluding the lawsuit.

• Outcome

• Fine of $125 million and injunction remain in effect;

• No further appeals, the case is officially closed.

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Summary by milestones

Timeline

Key developments

July 2023

Retail is not a security, institutional is a security.

August 2024

Fine of $125 million; injunction on institutional transactions remains unchanged.

March 2025

The proposal to reduce the fine to $50 million was rejected.

August 2025

Both parties withdrew their appeals; the lawsuit officially concluded, the result upheld.

Implications for the market

• XRP has been confirmed as not being a security in retail sales transactions, creating an important legal precedent for the entire crypto industry.

• Ripple is responsible for the fine and must comply with the marketing ban for institutional investors, but does not need to continue legal battles—can now focus on product development and market expansion.

• Investor and institutional trust may be restored, XRP records a positive response: price increases by 5–11%, volume surges.