After nearly five years of litigation, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) formally dismissed all remaining appeals on August 7-8, 2025, ending their high-profile legal battle. Ripple agreed to a $125 million settlement – substantially lower than the SEC's initial demands – while securing critical regulatory clarity: XRP is not classified as a security for secondary market transactions on exchanges.
The resolution stems from a December 2020 SEC lawsuit accusing Ripple of conducting a $1.3 billion unregistered securities offering. A pivotal July 2023 ruling by Judge Analisa Torres had previously determined XRP constituted a security only when sold directly to institutional investors, a distinction preserved in the final settlement. Ripple's Chief Legal Officer Stuart Alderoty confirmed the dismissal, stating: "The end…and now back to business," while CEO Brad Garlinghouse emphasized renewed operational focus.
Market reaction was immediate, with XRP surging 5-10% post-announcement. The XRP Army – a fervent supporter community – celebrated the outcome as validation of their long-held position, with member CryptoinsightUK declaring: "We were on the right side of history." The case sets a precedent for cryptocurrency regulatory classification, potentially influencing broader industry frameworks.