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XRP Rises More Than 13% Following Ripple and SEC Withdrawal of Final Appeals in Significant Case
Ripple Labs and the US SEC have officially concluded their nearly four-year legal battle, representing one of the most scrutinized cases in the history of cryptocurrency. Following the announcement, XRP experienced an increase of over 13%.
On Thursday, both parties submitted a joint notice to the US Court of Appeals for the Second Circuit, indicating their intention to voluntarily withdraw their respective appeals.
The SEC retracted its challenge to a 2023 decision that determined Ripple’s XRP token was not classified as a security when traded on public exchanges. Ripple, in response, also withdrew its cross-appeal. Both parties agreed to bear their own legal expenses.
Ripple Lawsuit Initiated Significant Examination of US Courts’ Perspective on Digital Tokens
The case commenced in 2020 when the SEC filed a lawsuit against Ripple under then-Chair Jay Clayton, alleging that the company raised funds through an unregistered securities offering by selling XRP. The lawsuit, lodged in the Southern District of New York, rapidly evolved into a pivotal case for how US law should regard digital tokens.
Following the Commission’s vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals.
The end…and now back to business. https://t.co/nVqthNcFOt— Stuart Alderoty (@s_alderoty) August 7, 2025
In July 2023, US District Judge Analisa Torres delivered a split ruling. She determined that Ripple had indeed breached securities laws when it sold XRP directly to institutional investors.
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However, she concluded that sales to retail investors via public exchanges did not constitute a securities offering, a finding widely regarded as a partial victory for the broader cryptocurrency industry.
The SEC appealed the ruling regarding retail sales last year, while Ripple filed a cross-appeal to fully defend its stance.
Ripple Achieves Resolution as SEC Reduces Aggressive Crypto Legal Approach
However, following Donald Trump’s return to the White House and the appointment of new leadership at the SEC, the agency began to retreat from several enforcement actions. More than a dozen crypto-related cases and investigations have since been discontinued.
In June of last year, Ripple and the SEC reached an agreement to settle the remaining penalties associated with the case. Judge Torres imposed a $125 million fine and a permanent injunction preventing Ripple from violating securities laws in future institutional sales of XRP. That penalty, currently held in escrow, will be transferred to the US Treasury upon the conclusion of the appeals.
Negotiations earlier this year aimed at reducing the penalty amount were unsuccessful, with Judge Torres rejecting several proposals due to procedural concerns. The dismissal of the appeals finalizes the settlement terms, bringing the protracted dispute to an end.
Now, with the 2023 ruling upheld, legal analysts suggest that the case may serve as a crucial reference point for how courts assess whether crypto assets are classified as securities. For Ripple, this clears the path for expanding operations, especially in regions that have already established clearer regulatory frameworks.
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