No evidence or credible report that the SEC has announced an upcoming rule prohibiting institutions from buying XRP except via retail markets. What the SEC and the courts have already decided — and what remains valid today — is rooted in a legal distinction between how XRP has been sold, not new or changing policy
What the Court Ruled (Summer 2023)
In July 2023, U.S. District Judge Analisa Torres ruled that Ripple’s direct institutional sales of XRP (done under written contracts) were unregistered securities transactions, and thus violated U.S. securities laws. Those sales met all three prongs of the Howey test: investment of money, common enterprise, and expectation of profits driven by Ripple’s efforts .
However, the Court found that “programmatic sales” — XRP sold on public exchanges through automated trading rather than directly by Ripple — were not securities transactions. Such purchases did not meet the Howey test, as buyers had no indication they were buying directly from Ripple, and thus lacked a reasonable expectation of profits tied to Ripple’s actions
What Happened Afterward
In August 2025, the SEC officially ended its legal case against Ripple. The appeals were dismissed, meaning the prior ruling stands: Ripple cannot sell XRP directly to institutions as an unregistered security—but programmatic sales (via exchanges) remain lawful, and that ruling is now final Reuters.
Reddit users summarizing the final outcome expressed it clearly:
“Legal to buy XRP on exchanges (secondary market): Retail or institutional investors can legally buy XRP on public crypto exchanges...”
So What’s True Today?
Institutions are not prohibited from legally buying XRP. The only restricted activity—and only under U.S. law—is Ripple’s direct unregistered sales to institutional investors (as found by the court).
Institutions (and anyone else) can legally buy XRP via exchanges or secondary markets, where XRP is sold programmatically or through trading platforms. These transactions were explicitly ruled not to be securities offerings and remain allowed .
Summary Table
Transaction TypeStatusRipple's direct institutional salesFound to be unregistered securities offerings – prohibited under existing judgmentXRP sales via public exchangesNot securities, legal and market-standard for retail and institutional buyers alike
Bottom Line
No new SEC announcement restricts institutions from purchasing XRP from anywhere.
The legal reality (as affirmed in 2025) is:
Ripple may not sell XRP directly to institutions under unregistered agreements
Institutions can buy XRP on standard exchanges like any other market participant.