On August 7, 2025, one of the most high-profile legal battles in the crypto industry came to an end — the confrontation between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The parties jointly withdrew their appeals in the Second Circuit Court of Appeals, effectively putting a period to a case that had lasted more than four years.
On this occasion, the Quickex editorial team decided to recall how the conflict began and what steps led to its long-awaited settlement.
Track the XRP rate on Quickex
Why the conflict arose
In December 2020, the SEC accused Ripple and its executives of illegally offering unregistered securities. According to the regulator, the XRP token was an investment contract, and sales totaling more than $1.3 billion violated U.S. capital market laws.
The SEC paid particular attention to institutional XRP sales to large investors. Ripple, however, insisted that XRP was a digital currency, not a security.
Interesting! To assess the status of the cryptocurrency, the SEC used the Howey Test. This tool appeared long before digital assets. Therefore, the effectiveness of applying it to determine the status of a cryptocurrency is questionable.
Timeline of events
| Period / Date | Event |
|---|---|
| December 2020 | SEC files a lawsuit against Ripple and top executives Brad Garlinghouse and Chris Larsen, accusing them of selling unregistered securities worth over $1.3 billion. |
| February–March 2021 | Start of court hearings, exchange of positions, and trial preparation. |
| July 2021 | Public arguments: SEC insists XRP is a security; Ripple claims it is a cryptocurrency. |
| October 2021 | Court issues rulings on disputed discovery issues, including Ripple’s internal correspondence. |
| July 2023 | Judge Analisa Torres issues the first important decision in the case: institutional XRP sales are recognized as securities, but secondary sales on exchanges (blind bid sales) are not. |
| 2023–2024 | Both parties file appeals on the parts of the ruling unfavorable to them. |
| June 2025 | Ripple CEO Brad Garlinghouse announces the withdrawal of their appeal, stating the intention to “close this chapter once and for all.” |
| August 7, 2025 | SEC and Ripple jointly withdraw their appeals; the 2023 decision comes into effect. Each party bears its own legal costs. |
Notably, the conflict began when the SEC was headed by Jay Clayton. He became known in the market for his reluctance to approve spot crypto ETFs. Many believe the Ripple lawsuit was his “farewell kiss” to the industry.
He was succeeded by Gary Gensler. Before his appointment, he showed interest in crypto and seemed like a friendly commissioner. In practice, however, Gensler unleashed unprecedented crackdowns on the crypto industry. Inspired by the Ripple case, he accused teams behind many other crypto projects of violating securities laws. Even Ethereum came under fire. However, Gensler himself was never able to explain why he considered some cryptocurrencies to be securities.
Now, the SEC is headed by Paul Atkins — a commissioner friendly to crypto who fully supports President Donald Trump’s pro-cryptocurrency rhetoric. It is no surprise that it was during his tenure that the Commission finally settled the conflict with Ripple.
What the court’s decision means
Withdrawing the appeals cemented a key precedent: retail token trading on exchanges is not always subject to securities laws, even if the regulator believes otherwise. However, institutional token deals may still violate the law.
For Ripple, this means the end of years of legal pressure and the ability to focus on development without the threat from the SEC.
Market reaction
Following the news of the case’s conclusion, the price of XRP rose by more than 14% — from $3.04 to $3.40. Investors took this as a signal of the token’s stabilizing legal status and strengthening of the company’s position in the global market.
XRP chart and growth following the news of the settlement with the SEC. Source: TradingView
Notably, XRP managed to hit a new all-time high even before the settlement news broke. On July 18, 2025, the coin briefly reached $3.65. At the time of writing this review, XRP is trading 9.1% lower.
What’s next for XRP
The market is now filled with forecasts for XRP. Members of the crypto community are confident that nothing will prevent the coin from achieving long-awaited growth.
To start, investors expect XRP to head toward $5. After that, in their opinion, it will aim for $10.
The boldest forecasts do not rule out XRP rising to $20 or even as high as $25 during 2025.
You can quickly buy or exchange XRP at the best rate using the anonymous exchange service Quickex.