Ripple Finally Wins SEC Battle as Appeals Court Ends Case After 4 Years
After a four-year legal battle, Ripple has secured a decisive victory. The U.S. appeals court has dismissed both the SEC’s appeal and Ripple’s cross-appeal, finalizing the lower court’s ruling that most XRP sales are not securities. The case is over—and Ripple is free to grow.
Ripple Triumphs: SEC Case Officially Closed
The final chapter has been written in one of crypto’s most pivotal legal battles.
The United States Court of Appeals for the Second Circuit has officially dismissed the SEC’s appeal in its case against Ripple Labs, bringing a definitive end to the four-year regulatory war that began in December 2020.
This action follows a joint motion to dismiss filed by both the SEC and Ripple earlier in 2025, signaling a mutual agreement to close the case. With the appeals court’s acceptance, Judge Analisa Torres’s landmark ruling stands as final.
“This is the final step in a long journey,” said a Ripple spokesperson. “We can now focus 100% on innovation, expansion, and delivering value to our global partners and XRP holders.”
Ripple Secures Final Judgment
The core of the victory lies in Judge Torres’s July 2023 ruling, which held that:
- Sales of XRP to retail investors on public exchanges do not constitute unregistered securities offerings.
- Only institutional sales of XRP by Ripple were deemed securities.
This crucial distinction dismantled the SEC’s broad argument that XRP itself was a security.
The final settlement included:
- Ripple paying a $125 million fine—a fraction of the $2 billion initially sought by the SEC
- The SEC dropping its push for a permanent injunction against institutional XRP sales
- No finding that XRP is inherently a security
This outcome provides clear regulatory certainty for Ripple, exchanges, developers, and investors.
Ripple’s Legal Officer Responds: “Focus on Growth”
Stuart Alderoty, Ripple’s Chief Legal Officer, confirmed the company will now shift focus from defense to offense.
“The appeals court’s dismissal marks the end of this chapter. We’re turning the page to accelerate our mission: transforming global payments with blockchain.”
With the legal cloud lifted, Ripple is expected to:
- Expand RippleNet partnerships with banks and payment providers
- Scale its On-Demand Liquidity (ODL) solution
- Explore new markets and tokenized asset initiatives
The victory also paves the way for potential XRP ETF filings, a possibility now far more viable than ever before.
Market Reaction Remains Cautious—but Confident
Despite the historic win, XRP’s price reaction was measured:
- +7% in 24 hours, but much of the optimism was already priced in
- Broader market momentum from the Fed’s dovish pivot also contributed
Still, the long-term implications are profound:
- Institutional confidence restored: Firms can now engage with Ripple without fear of regulatory overreach
- Exchange delistings reversed: XRP is firmly back on major U.S. platforms
- Developer activity expected to rise on XRP Ledger (XRPL)
For the XRP community, the closure ends years of anxiety and speculation. The token is no longer in legal limbo.
Why This Ruling Changes Crypto Forever
The SEC vs. Ripple case was a defining battle for the entire industry. Its resolution sets critical precedents:
- Not all crypto tokens are securities by default
- How a token is sold matters more than the token itself
- Regulatory overreach can be challenged—and won
This victory strengthens the legal foundation for utility tokens across the crypto ecosystem, from Solana to Chainlink.
