The long legal fight between Ripple and the US SEC is coming to a close. According to the defense lawyer James Filan, the US Court of Appeals for the Second Circuit has approved an agreement for both sides to drop their appeals.
#XRPCommunity #SECGov v. #Ripple #XRP The Second Circuit has approved the Joint Stipulation of Dismissal. pic.twitter.com/v796dAtfiZ
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 22, 2025
The order puts an end to the appeal processes, which had been paused earlier this year as Ripple and the SEC worked toward settlement terms. Now that the SEC’s appeal is dismissed, the case moves into final enforcement proceedings at the district court level.
The $125 million penalty remains
As previously reported by Cryptopolitan, Judge Analisa Torres’s ruling will remain in effect once dismissal is granted. The Judge said that Ripple was fined for conducting sales of XRP to institutional investors without registering it as a security. Therefore, under the deal, Ripple will pay a $125 million civil penalty to resolve charges tied to its institutional sales of XRP.
The order comes after a court decision from last year, when Judge Torres said that Ripple’s sales of XRP to institutions were unregistered securities offers based on the Howey test.
Judge Torres found Ripple responsible for sales to institutions. However, he also said that the company did not break any federal securities rules when it sold XRP automatically to individual customers through exchanges.
Although the final penalty is more than Ripple’s $10 million request, it’s much less than the almost $2 billion the SEC initially wanted. It would have included a lot of disgorgement and interest before the case started.
The court said in the order that the SEC’s request to return Ripple’s profits from institutional sales was denied because of the SEC’s proof of pecuniary harm. It was needed for disgorgement, was only hypothetical, and not enough to show real financial loss.
Also, the court said that the connection to the Ahmed case, which the SEC used to back up its claims against Ripple, didn’t work. That’s because that case involved clear theft and economic loss, which Ripple’s case didn’t have.
21Shares Registers XRP ETF in Delaware
In other news, 21Shares has officially registered an XRP ETF in Delaware, USA. This marks a turning point for XRP and its path to becoming more widely accepted by institutions.
🚨BREAKING 🚨
21SHARES XRP ETF REGISTERED IN DELAWARE pic.twitter.com/BqofWgxQfg
— Real World Asset Watchlist (@RWAwatchlist_) August 22, 2025
The registration in Delaware, a state known for its business-friendly legal environment, is a crucial first step in the lengthy process of bringing such a product to market.
It doesn’t mean the ETF is immediately available for trading, but it certainly indicates serious intent and progress. Also, the possible launch of an XRP ETF could completely change how investors trade in XRP.
In comparison to the impact of Bitcoin and Ethereum ETFs on ETH, BTC’s price, and institutional adoption, XRP could go all bullish. However, although it’s not a straight comparison because XRP is still in court with the SEC, the idea is still the same.
Increased accessibility often leads to increased demand and liquidity. This registration could be a powerful catalyst for XRP, drawing in a new wave of capital from traditional finance
To that end, 21Shares’s effort shows that they are taking a proactive approach, predicting future market needs and regulatory clarity. It also shows that crypto tokens are becoming more mature, which is good news for both investors and enthusiasts.
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