Ripple vs SEC: $125M Settlement Nears End After 4-Year Crypto Legal Battle
The Ripple vs SEC lawsuit, one of the longest and most watched in the crypto space, is nearing its end. The U.S. Securities...
Quick overview
- The Ripple vs SEC lawsuit, lasting over four years, is nearing resolution with a joint dismissal of appeals by both parties.
- Ripple will pay a $125M settlement, significantly lower than the initially proposed $2B, and XRP is officially not classified as a security for past sales.
- Future institutional sales of XRP will require registration, providing clarity for token issuers and investors in the U.S. crypto market.
- The case's closure hinges on the SEC's status report approval by the U.S. Second Circuit, which could enhance investor confidence in the crypto space.
The Ripple vs SEC lawsuit, one of the longest and most watched in the crypto space, is nearing its end. The U.S. Securities and Exchange Commission filed the complaint over 4 years ago, alleging Ripple Labs and executives conducted an unregistered securities offering through a $1.2 billion XRP token sale. The classification of XRP as a security caused the price to drop and broader market sentiment to suffer.
Many thought the case was over with the recent appeal dismissals, but formal closure hinges on the SEC’s status report being approved by the U.S. Second Circuit. Legal experts say until the Second Circuit accepts the report, the case is technically still active.
Appeals Dropped, $125M Settlement
On August 7, both parties moved closer to a resolution by jointly dismissing their appeals. Ripple dropped its cross-appeal and the SEC followed after an internal vote. This allows both sides to cover their legal fees and confirms Ripple will pay $125M – much lower than the originally proposed $2B.
Key points of the dismissal:
- XRP is officially not a security for past sales
- Future institutional XRP sales will require registration
- Legal fees split between Ripple and SEC
BREAKING: After nearly five years, the SEC vs. Ripple lawsuit has ended. Ripple pays a $125M fine. Publicly exchanged XRP is not a security, but institutional sales are restricted. A landmark moment for crypto regulation.
— Fixxxer ™️ (@fixxxer1971) August 15, 2025
Experts say this is a big shift in U.S. crypto regulation and provides more clarity for token issuers and investors.
SEC Status Report Means Final Approval
Despite the appeal dismissal, the SEC filed a new status report with the Second Circuit on August 16 as directed in June. Former federal prosecutor James K. Filan noted that once the report is approved by the court, the case will be officially closed.
Crypto observers have noted the delay. Sherrie, a market analyst, pointed out that the court had already approved the joint stipulation so the report was unnecessary. But once approved:
- Ripple can do institutional sales with regulatory compliance
- The $125M penalty will be processed
- U.S. crypto market will get clarity and investor confidence will improve
The resolution of the Ripple XRP lawsuit may be a turning point for crypto regulation in the U.S. and means enforcement actions can settle without market disruption.
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