The SEC–Ripple Enforcement Labs have dropped their appeals. This officially ends years long legal battle over XRP’s status. This lifts a major cloud over XRP and could boost investor confidence in the global crypto market.
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The crypto sector watched the courtroom drama between the U.S. SEC and Ripple Labs unfold for years. Three long years of arguments met their end as both parties decided to withdraw their respective appeals. This effectively brings closure to one of the most closely watched high-profile cases of the sector. 
A case that defined the crypto-regulation divide
This all started in December 2020 when the SEC sued Ripple Labs. The allegation – the company conducted an unregistered securities offering valued at over $1.3 billion through the XRP token sale. The case and its content became the talk of the town, raising an important question – whether crypto should be considered securities, commodities, or maybe a completely new asset class.
Ripple countered the allegations, arguing that XRP is a cryptocurrency just like Bitcoin and Ethereum and should be treated the same. The point to notice here is that both Bitcoin and Ethereum had been declared as ‘not securities’ by the SEC earlier. This made the battle more interesting. It was not about XRP anymore but about the crypto ecosystem as a whole. The outcome of this legal battle can become a roadmap for how U.S. ordinances set up cryptocurrencies.
Key milestones of this journey
Throughout these years there have been several court rulings in favor of both Ripple Labs and the SEC. In July 2023, Judge Analisa Torres ruled that XRP sales to retail investors on exchanges did not break securities laws, however, the same cannot be said for their institutional sales. Later in October 2023, the SEC dropped charges against Ripple executives.
It was in the beginning of 2025 when the air started clearing up. Both parties moved to settle specific penalty disputes without stretching the case any further. Finally, now they have decided to abandon their appeals. The case officially flips its final chapter, one which will close this saga.
Implications for XRP and the crypto market
The immediate results of the news were shown by the charts – they surged, with volumes soaring across trading platforms globally. It is a clear telling of the world, where the industry momentum lies.
With legal uncertainties lifted, Ripple can focus on working on XRP’s use cases. This change will also bring in more institutional investments, which were earlier hesitant. One of the most important outcomes of the ruling is that there can be a chance for some digital assets to fall beyond securities laws.
The bigger picture – crypto regulation is still ‘work in progress’
Irrespective of the resolution, the broader regulatory horizon is still hazy. Many other crypto projects remain open to enforcement actions by the SEC. Congress is still avoiding giving clear statements. A broad piece of legislation meant to explicitly define the legal status of digital assets is yet to materialize.
The SEC and Ripple case may be ending, but its heat will be felt for years to come. The immediate shuffle, however, goes from the courtroom to the boardroom for Ripple. It is here where they have to work to grow partnerships in cross-border payments, DeFi, and tokenized asset markets.
Disclaimer: This is an informative article and not investment advice. Make sure you know the market and have done your research before any investment.
FAQ
What was the SEC’s case against Ripple about?
Back in 2020, the SEC alleged Ripple sold over $1.3 billion worth of XRP as unregistered securities. This was seen as a violation of U.S. securities laws.
Why is the case ending now?
A partial ruling came in 2023, and then earlier this year both parties worked out and resolved their major disputes.
