Ripple’s prolonged legal tussle with the U.S. Securities and Exchange Commission (SEC) has drawn to a dramatic close. On August 7, both parties filed a joint motion with the 2nd Circuit Court of Appeals, officially ending a protracted dispute that has significantly influenced the conversation around cryptocurrency regulation.
A Landmark Resolution
The legal saga, which began in December 2020, finally reached its conclusion as both Ripple and the SEC agreed to withdraw their respective appeals. Ripple’s Chief Legal Officer Stuart Alderoty announced on social media, “The matter is over,” signaling a return to business as usual for the firm. This development marks the cessation of nearly five years of intense courtroom skirmishes.
The case centered around whether XRP, Ripple’s native cryptocurrency, constituted a security. A 2023 ruling had determined that XRP sales on public exchanges were not securities—a decision the SEC initially sought to challenge. Conversely, Ripple had appealed the finding that institutional XRP sales violated securities laws. Now, with both appeals abandoned, the $125 million in penalties set by Judge Analisa Torres will stand. Notably, $50 million will be directed to the U.S. Treasury, while $75 million, held in escrow since June, will be returned to Ripple.
Political Winds and Market Implications
This resolution comes amid a broader shift in the regulatory landscape under the administration of U.S. President Donald Trump. Newly appointed SEC Chair Paul Atkins has reportedly taken a more lenient stance towards the crypto industry, scaling back numerous enforcement actions. Ripple CEO Brad Garlinghouse had hinted at this potential resolution back in June, although negotiations to lessen the financial penalties were unsuccessful. This development aligns with SEC Chief Paul Atkin’s ongoing initiatives, as discussed in our recent article on his project crypto flying under the radar.
Market experts suggest that the SEC’s decision reflects its evolving approach to crypto regulation, a sentiment echoed by the recent outcomes of other high-profile cases involving Coinbase and Kraken. As crypto analyst Michael Jenkins noted, “The dismissal of appeals signals a potential recalibration of regulatory priorities under the new administration.”
Ripple’s legal victory has invigorated XRP’s market performance. The cryptocurrency soared 13% following the announcement, with trading volumes spiking to $9.50 billion—a remarkable 100% increase from the previous day. Over the past week, XRP has climbed nearly 14%, rejuvenating investor enthusiasm now that the legal uncertainties have dissipated.
Ripple’s Path Forward
The conclusion of the legal drama allows Ripple to refocus on its business objectives unencumbered by the shadow of litigation. Despite the permanent injunction prohibiting institutional XRP sales without regulatory compliance, the company can now pivot its attention to fostering growth and innovation within the crypto space. This strategic shift is mirrored by other market players, such as SBI, which has filed for a Bitcoin–XRP ETF in Japan, as detailed in our coverage of their push for dual crypto exposure.
Yet, questions linger about the broader implications of this case. Will this resolution embolden other crypto firms facing similar regulatory scrutiny? And how will the evolving political climate continue to shape the landscape for digital assets?
As the dust settles, the crypto community is left speculating on the future trajectory of Ripple and the regulatory environment at large. While the courtroom battles may have ended, the debates over cryptocurrency regulation are far from over. As Ripple charts its course forward, investors and industry watchers alike remain keenly observant, eager to see what the next chapter holds.
Source
This article is based on: Ripple-SEC Legal Drama Ends; XRP Skyrockets 13%
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
