Ripple has officially ended its prolonged legal fight with the U.S. Securities and Exchange Commission (SEC) by dropping its cross-appeal on June 27, 2025, marking the closure of the extensive lawsuit regarding the classification of XRP.
Key points include: Ripple agreed to pay a $50 million penalty, reduced significantly from the initial $125 million demand. Despite the settlement, restrictions on XRP's institutional sales remain in place due to the court injunction.
The conclusion of this litigation eliminates considerable regulatory uncertainty surrounding XRP, enabling Ripple to redirect resources toward business development focused on building the "Internet of Value," as emphasized by CEO Brad Garlinghouse.
This legal outcome parallels earlier cases involving Ethereum and Block.one, where asset classification disputes were similarly resolved with major settlements. Ripple's partial non-security status aligns XRP with these precedents, suggesting a clearer legal framework for the cryptocurrency and potentially fostering greater market confidence.
The settlement is expected to stabilize XRP’s market position while maintaining compliance reforms. However, the ongoing injunction means institutional sales remain limited, tempering immediate trading volume recovery.