U.S. Court Ends Ripple-SEC XRP Lawsuit, Legal Uncertainty Clears

The U.S. Court of Appeals for the Second Circuit has officially ended the nearly five-year legal dispute between Ripple Labs and the SEC by approving a joint motion to dismiss all appeals, confirming that XRP is not a security in secondary market transactions. Ripple agreed to pay a $125 million civil penalty, significantly less than the SEC's initial demand, while the ruling provides legal clarity that has been welcomed by the cryptocurrency industry and investors alike. This resolution follows a 2023 decision by Judge Analisa Torres, which served as a pivotal precedent clarifying XRP's regulatory status and allowing Ripple to continue its operations without threat of SEC enforcement in this context. The dismissal has spurred renewed interest in XRP, with multiple asset managers submitting amended registration statements for XRP ETFs, signaling strong market optimism and potential inflows estimated to reach $8 billion in the first year of trading. Additionally, this legal clarity aligns with global regulatory developments, such as Canada's listing of XRP ETFs and the forthcoming EU Markets in Crypto-Assets framework, reinforcing XRP's legitimacy internationally. XRP's price responded positively, surging over 8% to trade around $3.10 following the announcement, reflecting broad market appreciation for the case's conclusion.