As the year draws to a rapid close, the lawsuit between Ripple Labs and the United States (US) Securities and Exchange Commission (SEC) stands as one of the most consequential and closely watched legal battles in crypto history. Long before its official resolution, the case dominated the space, consistently making top headlines with each new filing, ruling, courtroom development, and update. Ripple and the SEC went head to head to determine whether XRP should be classified as a security under US law. For XRP investors, the lawsuit’s verdict served as a long-awaited reprieve after years of regulatory uncertainty and suppressed price action in XRP.
Ripple Vs SEC Lawsuit Recap For XRP Investors
After years of uncertainty, the long-running dispute between Ripple and the US SEC officially concluded in 2025. The case has been a defining moment for cryptocurrency regulation in the United States and has significantly influenced XRP investors worldwide.
The lawsuit began on December 20, when the SEC accused Ripple of selling XRP as an unregistered security. The crypto payments company, however, argued that XRP is a digital asset, not a security under US law. Fast forward to 2023, Judge Analisa Torres from the Southern District of New York delivered a mixed ruling, finding that XRP sold on public exchanges did not constitute securities transactions, earning Ripple a partial victory.
Although the ruling provided some level of clarity, it left unresolved questions that continued to affect XRP’s trading and adoption. Following the court’s decision, Ripple was ordered to pay a civil penalty of roughly $125 million in 2024 for institutional sales of XRP. An injunction was also imposed, restricting the company from engaging in similar activities in the future. The penalty was far below the nearly $2 billion fees initially sought by the SEC.
In early 2025, both parties filed appeals and cross-appeals. The SEC challenged the exemption for public exchange sales, while Ripple contested the injunction’s restrictions. The dispute took a decisive turn when Ripple and the regulator jointly requested the Manhattan District Court to dissolve the injunction and release the $125 million civil penalty held in escrow.
Under the agreement, only $50 million will be paid to the SEC, with the remaining funds returned to Ripple. The court approved this arrangement, formally resolving the nearly 5-year case and eliminating years of regulatory uncertainty and slow growth in XRP.
How the Ripple-SEC Case Impacted XRP Investors
For years, the Ripple-SEC legal dispute had caused sharp price fluctuations, slow growth, and limited exchange listings for XRP. Many investors held back from buying or selling the token due to regulatory risks. As a result, the XRP price remained suppressed around $0.5 for an extended period, even as other cryptocurrencies reached new ATHs.
After the court’s ruling in 2024, the XRP price exploded, rising from $0.5 to over $2 in November. The official resolution of the case also boosted investor sentiment, contributing to the cryptocurrency’s price surge above $3 in 2025. Although XRP has since dropped from these levels, its trading volume and adoption continue to benefit from the regulatory clarity.
Featured image created with Dall.E, chart from Tradingview.com
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