Ripple and SEC's four-year "century lawsuit" finally comes to an end, XRP rises 13%, key precedent established for encryption securities | 2025 regulatory barometer

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have officially concluded their four-year legal battle. On August 8, both parties submitted a joint notice to the Second Circuit Court of Appeals, announcing the voluntary withdrawal of all appeals. This move means that the landmark ruling by Judge Torres in 2023—that the sale of XRP on the retail end by exchanges does not constitute a security—is now final. Following the announcement, XRP saw a big pump of 13%. The settlement terms remain as originally ruled: Ripple must pay a fine of $125 million for the illegal sale of XRP to institutional investors (already held in escrow), with each party bearing its own legal fees. This case establishes a key judicial precedent for the determination of the securities nature of encryption assets.

The Final Chapter of Four Years of Litigation: Dual Withdrawal of Appeals, 125 Million Fine Imposed On August 8, 2025 (Thursday), XRP and the SEC jointly submitted a notice of withdrawal to the U.S. Court of Appeals for the Second Circuit. The SEC withdrew its appeal of the 2023 ruling (which ruled that the sale of XRP on the retail side of the exchange is not a security), and XRP simultaneously withdrew its cross-appeal. Both parties reached a final settlement: each party bears its own legal fees, and the $125 million penalty that XRP must pay for illegal sales to institutional investors (held in trust by the court) will be transferred to the U.S. Department of the Treasury after the proceedings conclude. This result marks the end of a landmark lawsuit that began in 2020, reshaping the landscape of encryption regulation.

Core Judgment on Inherited Assets: Exemption from Securities Identification for Retail Sales on the Exchange This case originates from the lawsuit initiated by former SEC Chairman Jay Clayton in 2020, accusing Ripple of conducting an unregistered securities offering by selling XRP. In July 2023, Judge Analisa Torres of the Southern District of New York made a split ruling:

1. Violation: The direct sale of XRP to institutional investors violates securities laws.
2. Exemption Part: Selling XRP to retail investors through public exchanges does not constitute a securities issuance. The latter is seen as a significant victory for the encryption industry, providing a key basis for the compliance of exchange token listings. The SEC had appealed the retail sales exemption last year, and this withdrawal makes the Torres ruling a final legal conclusion.

Political Variables Catalyst: Trump's New Policy Promotes SEC Strategic Contraction The deeper background of the settlement is Trump's reshaping of the SEC leadership after returning to the White House. Since the new chairman took office, the SEC has withdrawn more than a dozen lawsuits and investigations related to encryption, marking the transition from a strong regulatory era. Although XRP attempted to negotiate a reduction in the fine, Judge Torres rejected the proposal on procedural grounds, ultimately maintaining the original judgment of $125 million. With the appeal withdrawn, the fine enforcement process has officially commenced.

Industry Impact is Profound: SEC Ruling on Securities Classification and XRP's Global Expansion Removes Barriers The judicial outcome of this case brings two certainties to the encryption industry:

1. Case Value: Judge Torres's "Transaction Scenario Distinction Principle" (the sales object and method determine the securities attributes) has become an important reference in judicial practice.
2. Business Unbinding: XRP is able to free itself from litigation uncertainties and focus on expanding into regions with an established clear token regulatory framework (such as the EU and Singapore). Legal observers point out that this ruling will continue to impact future token securities attribute testing standards, especially providing guidance for compliance of exchange listings and institutional over-the-counter trading.

[Conclusion] The conclusion of the Ripple vs. SEC case is not just a victory for a single company, but also a watershed moment in the judicial process of encryption regulation. The dual standard established by Judge Torres of "direct sales by institutions = securities, retail on exchanges ≠ securities" has officially been elevated to an authoritative precedent after the SEC's appeal was withdrawn, delineating relatively clear compliance boundaries for the industry. With the Trump administration pushing for a strategic contraction of the SEC, more unresolved encryption lawsuits may head towards settlement. The market's response after the case's conclusion, with XRP rising by 13%, confirms the capital's thirst for regulatory certainty. Ripple will accelerate its layout in cross-border payments and central bank digital currency (CBDC) infrastructure, while the entire industry now possesses a key legal shield against the SEC's "enforcement regulation." The collision between the encryption world and traditional regulation thus enters a new chapter.