SEC case against Ripple for securities law violations officially closed

Earlier, the court ruled that institutional sales of the asset violated securities law

SEC v. Ripple case regarding the status of the XRP token has been officially dismissed

08.08.2025 - 14:35

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What’s new? The lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple has officially ended, as both parties voluntarily withdrew their appeals against the 2023 ruling. According to a statement dated August 7, the SEC and Ripple will bear their own legal costs.

Marerial by CoinDesk

What else is known? The joint agreement ends the litigation that began in 2020. At that time, the SEC, under former Chair Jay Clayton (now head of the US Attorney’s Office for the Southern District of New York), accused Ripple of violating laws in the sale of its own XRP token, which it claimed was an unregistered security.

In 2023, the court ruled that the company had committed a violation in direct institutional sales of the asset, while its distribution through exchanges to retail investors was not a violation.

Although this decision was a landmark for the industry, in 2024, the SEC, now under Chairman Gary Gensler, attempted to challenge it, and Ripple filed a counter-appeal.

US banks have come out against issuing Circle and Ripple banking licenses anytime soon

The industry associations emphasized that the crypto firms’ applications lacked sufficient information about their business plans

In June of this year, the parties agreed to withdraw their appeals, leaving the $125 million penalty for institutional sales violations in place. Moreover, the parties attempted to negotiate a reduction in the penalty, but Judge Analisa Torres rejected the attempts on procedural and other grounds.

Over the past few months, with the arrival of Trump and the new administration, the SEC has radically changed its approach to regulating the digital asset sector and has closed more than a dozen cases and investigations involving industry companies.

Moreover, the SEC, in conjunction with the Commodity Futures Trading Commission (CFTC), has begun implementing the White House’s recommendations on crypto regulation.

Against the backdrop of the latest news, XRP rose 8,3% in one day. The asset ranks third in the overall cryptocurrency rating by market capitalization after Bitcoin and Ethereum, with a value of $197,84 billion, and is trading at $3,34. Its growth since the beginning of the year has been 60,5%.

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