TLDR
- XRP Lawsuit Ends: Ripple to Pay $125M, Secondary Sales Not Deemed Securities
- Ripple-SEC Case Dismissed: XRP Gains Legal Clarity in Landmark Ruling
- Court Confirms XRP Isn’t a Security in Secondary Sales, Ripple Fined $125M
- Ripple, SEC Drop Appeals as XRP Gains Key Win in Crypto Regulation Battle
- Ripple’s Legal Battle Ends: XRP Free from Security Label in Secondary Market
The XRP lawsuit has officially ended following the US Second Circuit Court’s approval of a joint dismissal by Ripple and the SEC. This decision closes a nearly five-year legal battle over the classification and sale of XRP. With all appeals withdrawn, enforcement actions now proceed at the district court level.
Ripple must now pay a $125 million penalty related to its institutional XRP sales, as ordered by Judge Analisa Torres in 2024. The court also confirmed that XRP does not qualify as a security in secondary market transactions. As the lawsuit concludes, XRP’s legal clarity may strengthen its market position.
The dismissal follows months of negotiations and a final resolution between Ripple and the SEC, with no further appellate proceedings expected.
XRP Lawsuit Closed as Court Dismisses Appeals
The US Court of Appeals for the Second Circuit has formally dismissed both Ripple’s and the SEC’s appeals. This move follows the parties’ joint stipulation seeking to withdraw their respective legal challenges. The court accepted the filing and marked the dismissal “So Ordered,” finalizing the matter.
This action confirms that Judge Torres’ earlier rulings will remain intact, including her stance on XRP’s secondary market status. Although Ripple initially agreed to a reduced $50 million settlement, the judge retained the original $125 million fine. Consequently, the final judgment proceeds under those terms, with XRP’s secondary transactions exempt from securities classification.
Ripple and the SEC had filed the dismissal after agreeing to resolve the case without further litigation. With the appellate process now over, the legal roadmap for XRP appears more certain.
Ripple to Pay $125M in Civil Penalty
Ripple will now proceed to pay a $125 million penalty imposed for unregistered institutional sales of XRP. This amount had been held in escrow during the appeals process and will now be released to the SEC. Despite attempts to lower the fine, the court rejected a reduced penalty agreement.
Judge Torres also imposed a permanent injunction barring Ripple from further institutional XRP sales without SEC registration. While the parties attempted to dismiss this injunction during settlement talks, the court declined to alter the judgment. These enforcement conditions will now be implemented at the district level.
Ripple CEO Brad Garlinghouse previously emphasized the positive outcome for XRP’s status in the broader crypto market. The conclusion now allows Ripple to operate with clearer legal boundaries.
XRP’s Legal Clarity May Boost Market Outlook
XRP’s legal status has been a central issue for the crypto sector since the SEC sued Ripple in 2020. The dismissal provides long-awaited clarity, especially regarding how securities laws apply to digital assets. The ruling that XRP is not a security in secondary markets sets a key precedent.
The SEC had challenged this classification on appeal, but the Second Circuit’s dismissal now blocks any further challenge. XRP-related ETF applications are still awaiting SEC approval by October. Legal experts suggest that this resolution may influence the SEC’s decisions on those filings.
With the legal dispute settled, XRP’s regulatory future appears more stable, offering potential for broader financial integration. XRP continues to remain central in shaping crypto regulation across the United States.
