TLDR
- Ripple and the SEC have jointly filed to dismiss their appeals in the XRP Lawsuit.
- The joint motion was submitted under Federal Rule of Appellate Procedure 42(b)(1).
- Ripple’s Chief Legal Officer confirmed the decision and stated that Ripple is now back to business.
- Judge Analisa Torres previously ruled that XRP is not a security but found Ripple violated laws with institutional sales.
- Ripple was ordered to pay a $125 million fine and faced a permanent injunction on future institutional sales.
The long-running XRP Lawsuit is nearing its conclusion after Ripple and the U.S. SEC filed to dismiss their appeals. Both parties submitted a joint motion under Federal Rule of Appellate Procedure 42(b)(1) to the Second Circuit. The move marks the formal end to nearly five years of legal conflict.
SEC and Ripple Agree to Withdraw Appeals
Ripple and the SEC jointly requested the dismissal of the appeal and cross-appeal in the XRP Lawsuit. The filing followed an internal vote at the SEC, with most commissioners favoring a resolution. Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the decision and stated, “Ripple is now back to business.”
The motion states that each side will cover its own legal fees and costs without further claims. This development comes after both parties pursued appeals following a partial ruling in July 2023. Judge Analisa Torres had ruled XRP itself was not a security but found Ripple violated laws with past institutional sales.
The SEC initially challenged the ruling on programmatic sales, while Ripple sought to overturn the institutional sales violation. Both appeals remained pending until this coordinated dismissal. This resolution removes the risk of further appellate rulings impacting the earlier court decision.
Background of the XRP Lawsuit
The SEC filed the XRP Lawsuit on December 22, 2020, accusing Ripple of illegal securities sales. The case formally began in 2021 and quickly became one of the most closely followed in the crypto industry. Ripple reportedly spent over $150 million defending against the allegations.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The parties have filed a Joint Dismissal of the Appeals. The case is over. pic.twitter.com/QMATRLnxnS
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 7, 2025
In July 2023, Judge Torres concluded XRP was not inherently a security, benefiting Ripple’s exchange-based sales. However, she ruled that earlier direct sales to institutions met the definition of investment contracts under federal law. The court ordered Ripple to pay $125 million and issued a permanent injunction against similar future sales.
Following the ruling, both sides prepared appeals that could have extended the XRP Lawsuit for years. Changing political and regulatory conditions in early 2025 increased speculation that a settlement was likely. The latest dismissal request confirms those expectations.
Market Reaction to the Resolution
The XRP price showed volatility earlier this week, dropping below $3 before the latest development. Following the joint dismissal filing in the XRP Lawsuit, XRP surged to an intra-day high of $3.38. It later traded at $3.34, reflecting a 12.34% daily gain and a 12.27% weekly increase.
Analysts noted the market’s positive response to the resolution of the XRP Lawsuit. Removing legal uncertainty appeared to restore confidence among traders. While the Second Circuit must still enter the dismissal, this filing effectively ends the dispute.
