One of the biggest cases in the crypto ecosystem appears to be nearing its end, as the U.S. SEC and Ripple Labs have jointly filed to dismiss their appeals in the Second Circuit. Lawyers from both teams have agreed to end the appellate proceedings with each party bearing its own costs.
The dismissal, which was filed on Thursday, leaves the U.S. District Judge Analisa Torres’s July 2023 ruling as the final judgment. The latest move from both parties excites the crypto community, as a new chapter begins for the SEC and Ripple Labs.
Judge Analisa’s Mixed Ruling Stands
With both the U.S. SEC and Ripple Labs abandoning their appeals, Judge Analisa Torres’s July 2023 ruling now stands as the final judgment. The judge ruled that XRP secondary-market transactions are not securities offerings, while sales to institutional investors are considered registered securities offerings.
Ripple and the SEC had been working towards an agreement for some time now, although the regulator didn’t publicly announce it. Ripple CEO Brad Garlinghouse said in June that his firm intended to drop the case. He said, “We’re closing this chapter once and for all, and focusing on what’s important, building the internet of value.”
What the Dismissal Appeals Signify
The appeals bring to an end about half a decade of dispute between Ripple and the SEC. Over the years, there have been severe injunctions and motions filed over the status of XRP. The SEC first filed on December 22, 2020, accusing Ripple of allegedly selling XRP as an unregistered security to institutional investors to the tune of $1.3 billion. The following year, Ripple filed a motion to dismiss the suit, arguing that the SEC failed to give fair notice.
There came the landmark ruling in July 2023. Judge Analisa Torres delivered a split verdict, in which she declared that XRP sold to institutional investors was securities while that sold programmatically on public exchanges was not a security. Ripple faced a fine of $125 million, but the court denied prejudgment interest.
The dismissal aligns with the Judge’s ruling and provides a template on how U.S. courts should treat digital assets. With the legal matter closed, Ripple can accelerate its expansion plans.
Following the news, XRP jumped 7%, from $3.04 to $3.27. The crypto currently trades at $3.23, as of the time of this publication.
Ripple and SEC Have Been Busy in 2025
The firm has made several acquisitions in 2025. According to its CTO, David Schwartz, Ripple will continue making strategic acquisitions and technological investments that align with their vision. So far, the firm has acquired prime broker Hidden Road for $1.25 billion, as well as crypto custody firms Metaco and Standard.
As for the SEC, the regulator has taken many giant strides under the new Trump administration. Recently, it issued a stop-gap accounting guidance to provide accounting clarity to stablecoins. The temporary rule will treat regulated and compliant stablecoins as cash. This comes after SEC Chair Paul Atkins announced “Project Crypto,” an initiative to modernize crypto market regulation in the United States.
What’s Next for Ripple and the SEC?
Ripple plans to launch an XRP lending protocol by Q3, 2025, and an XRP ETF. The firm will also acquire stablecoin payment platform Rail for $200M, a deal expected to close Q4 2025 pending regulatory approval. After launching RLUSD, Ripple doubled down on stablecoin infrastructure. Acquisition integrates Rail’s virtual accounts & automated settlement, boosting cross-border payment capabilities.
The SEC will look forward to keeping its momentum, as more crypto-friendly policies are expected to roll out. The joint dismissal means both parties can focus on making the United States crypto ecosystem great again. Ripple will continue to introduce innovative products, while the SEC ensures the space is safe and friendly for firms to make their mark.
