Ripple vs SEC: Recent Update Emphasizes Pivotal Aspects
The Ripple-SEC lawsuit, a legal battle that has been ongoing for several years, has reached its final phase following the joint stipulation of dismissal of all pending appeals by both parties. The U.S. Court of Appeals for the Second Circuit approved the dismissal, effectively ending the appellate proceedings as of August 2025 [1][2].
The dismissal means that Ripple must pay a $125 million civil penalty for its institutional sales of XRP and comply with an injunction preventing further violations of securities registration laws [1][2]. However, the court clarified that XRP is not considered a security for secondary market trades, a victory for Ripple’s CEO and the broader crypto industry [1].
With the appeals dismissed, the case now proceeds only to final enforcement steps at the district court level [1][3]. This dismissal has also removed much of the regulatory uncertainty surrounding XRP, leading to positive impacts on XRP’s market price [3].
The SEC and Ripple, along with their respective leaders Bradley Garlinghouse and Christian A. Larsen, have agreed to dismiss their appeals in the ongoing lawsuit. The joint stipulation of dismissal was entered into on Aug. 7, 2025, and was filed with the United States Court of Appeals for the Second Circuit [4].
The dismissal of the appeals resolves the Commission's civil enforcement action against the defendants. The SEC's civil enforcement action against Ripple Labs, Bradley Garlinghouse, and Christian A. Larsen imposed a $125,035,150 civil penalty and an injunction prohibiting Ripple from violating the registration provisions of the Securities Act of 1933 [5].
Despite the dismissal, the final judgment in the Ripple SEC lawsuit remains in place. Ripple's chief legal officer, Stuart Alderoty, referenced the SEC's actions and stated that the dismissals marked "the end" of the case [6]. XRP enthusiast and legal attorney Bill Morgan, on the other hand, considers the latest move in the Ripple SEC lawsuit as just a formality with no impact on past or future developments [7].
James K. Filan, a former federal prosecutor, has shared a new update on the Ripple SEC lawsuit. The SEC has filed a status report with the Court of Appeals, stating that each party will bear its own costs and fees [8]. The XRP community is awaiting a crucial August date related to this development.
In summary, both the SEC and Ripple have dismissed their appeals, Ripple must pay $125 million and comply with an injunction, XRP is not deemed a security in secondary market trading, the case is effectively resolved except for final enforcement actions, and legal clarity has positively influenced XRP’s market sentiment [1][2][3][5].
References: 1. CoinDesk 2. Bloomberg 3. Decrypt 4. The Block 5. SEC 6. Stuart Alderoty (Twitter) 7. Bill Morgan (Twitter) 8. James K. Filan (Twitter)
- The dismissal of the appeals in the Ripple-SEC lawsuit has inaugurated a new phase for crypto trading, as the regulatory uncertainty surrounding XRP has been alleviated, potentially influencing the market price of Ethereum and other digital assets.
- The joint stipulation of dismissal between the SEC and Ripple has significant implications for the finance sector, particularly in regards to investing in crypto, as it sets a precedent for secondary market trades of XRP not being considered securities.
- With the legal battle now centered on final enforcement actions at the district court level, technology companies specializing in blockchain and finance may explore opportunities in the crypto market, bolstered by the recent positive court rulings on XRP.
