The Ripple vs. SEC lawsuit has effectively ended after both parties agreed to dismiss their appeals. XRP’s status as not a security on secondary markets stands, while institutional sales remain regulated, alongside a $125 million penalty and injunction.
Appeals Officially Dismissed
The US Court of Appeals for the Second Circuit approved a joint stipulation by Ripple and the SEC to dismiss their respective appeals, officially ending appellate litigation in the case. This decisive move brings closure to the multi-year legal battle that began in December of 2020.
The outcome means Judge Analisa Torres’s rulings remain final and fully enforceable. Specifically, her 2023 judgment clarified that XRP sold on public exchanges does not constitute a security, while institutional sales are subject to securities regulations. Additionally, the $125 million civil penalty and associated injunction against Ripple’s institutional XRP sales remain intact.
Ripple’s Chief Legal Officer described the appeal dismissals as marking “the end,” signifying that the company can now shift focus toward business operations without legal overhang.
One Minor Procedural Step Left
While the legal battle is effectively concluded, one routine administrative formality remains: a clerical closure of the case by the appellate court clerk. No further judicial review or judge approval is required. Legal commentator Marc Fagel emphasized:
“The only thing remaining is administrative closing of the case by the clerk. No judge approval is required. It’s essentially over already.”
This final procedural action is expected to occur shortly and will formally conclude the case in all respects.
Frequently Asked Questions
Why is the $125 million fine still enforced?
Because both parties dismissed their appeals, meaning the district court’s judgment—including the civil penalty—remains fully enforceable.
What remains before the lawsuit is truly closed?
Only a formal administrative action is pending: the appellate court clerk must approve the joint stipulation of dismissal. No judge’s further approval is needed.
What are the broader implications for XRP and crypto regulation?
With the legal uncertainty lifted, XRP’s regulatory status is clearer—boosting investor confidence and potentially paving the way for broader regulatory clarity in the crypto industry.
