- Ripple and the SEC filed a joint dismissal, ending their long-running XRP legal case.
- The case outcome sets a hybrid legal status for XRP in retail and institutional sales.
- XRP investors now watch how this precedent may guide other token-related legal cases.
On August 7, the U.S. Securities and Exchange Commission (SEC) and Ripple Labs formally filed a Joint Stipulation of Dismissal with the Second Circuit Court of Appeals, ending their prolonged legal dispute over XRP.
The filing confirms that both parties agreed to withdraw their respective appeals and close the case, with each covering their legal fees. This joint action marks the final resolution of one of the most closely watched crypto lawsuits in U.S. history. Could this settlement reshape future digital asset regulation?
Appeals Dropped After Commission Vote
In his X post, Ripple’s Chief Legal Officer, Stuart Alderoty, announced that following the SEC’s internal vote, the two sides directly filed for dismissal with the Second Circuit. He stated, “The end… and now back to business.”
Court records show the SEC’s appeal, listed as Case No. 24-2648, and Ripple’s cross-appeal, Case No. 24-2705, have both been withdrawn. According to the joint stipulation, each side agreed to bear its legal costs and fees, effectively ending all pending litigation. Ripple CEO Brad Garlinghouse had already indicated in June that the company intended to drop its cross-appeal, stating, “We’re closing this chapter once and for all and focusing on what’s most important—building the Internet of Value.”
Legal filings confirm that the agreement was the culmination of settlement discussions that began earlier this year. Ripple signed a settlement agreement in April, followed by the SEC in May. Both parties had requested the appeals court to pause proceedings while they pursued a final resolution.
Case Origins and Court Rulings
In December 2020, the SEC filed a case against Ripple Labs, Brad Garlinghouse, and Chris Larsen for selling securities without registration through the sales of XRP. On the contrary, Ripple claimed that XRP was a digital currency and not a security and that its sales were legal.
In 2023, a divided decision from Judge Analisa Torres held that the sales of XRP to retail exchanges were not securities transactions, but sales to institutions connected with the laws. Ripple was ordered to pay civil penalties of $125 million and was protected by an injunction against undertaking further institutional sales.
The parties appealed against the split decision, with Ripple appealing against the penalties and injunction, while the SEC appealed the ruling that retail sales were not securities violations. However, things slowed due to procedural intricacies. A first attempt seeking an indicative ruling from Judge Torres backfired after the parties filed under Rule 62.1 instead of Rule 60(b), and the corrected filing under the proper rule was submitted in June.
Related: Ripple Battles Against 42 Banks to Reshape Global Finance
Final Resolution and Industry Impact
Attorney James K. Filan reported that the joint dismissal filed with the Second Circuit formally ended the appeals process. Ripple’s legal team confirmed that no further appeals or related litigation remain pending, describing the settlement as final and binding.
This closure amends the circumstances, enabling the SEC to divert manpower and resources to other ongoing digital asset enforcement actions. The case then establishes legal precedent for future token cases, as the court holds a hybrid classification for XRP: selling to retail represents a non-security, whereas selling to institutional parties represents a security.
The XRP community responded with relief and optimism. On social media, they mentioned the blessings of being able to operate without a high-profile legal challenge. Now, the larger crypto space is keenly watching whether this precedent will bear on the regulatory approach to other tokens possessing similar characteristics.
