XRP Lawsuit Ends: Appeals Dropped, $125M SEC Fine
On August 7–8, 2025, the long-running XRP lawsuit between Ripple Labs and the SEC officially concluded. Both parties withdrew their appeals in the U.S. Court of Appeals for the Second Circuit, ending litigation that began in December 2020. The 2023 District Court ruling—finding public exchange sales of XRP are not securities while institutional sales are—remains in force. Ripple’s $125,035,150 civil penalty, already escrowed, will now transfer to the SEC, and the injunction under the Securities Act stays active.
This settlement ends a major legal overhang for XRP. Traders reacted with an 11% intraday price jump to $3.38, followed by a mild 1.31% pullback to $3.13 as of CoinMarketCap data. With the XRP lawsuit resolved, market participants can refocus on Ripple’s product roadmap and partnerships. The removal of regulatory uncertainty is expected to restore investor confidence and stabilize market volatility, paving the way for renewed operational developments by Ripple Labs.
Bullish
Resolving the XRP lawsuit removes a major legal overhang and regulatory uncertainty. Short term, the announcement triggered an 11% price spike and prompted trading volume increases, demonstrating bullish trader sentiment. Although a brief 1.3% pullback followed, market participants can now assess Ripple’s fundamentals without legal risk. Long term, finalizing the SEC settlement and confirming the $125M penalty frees XRP to pursue new enterprise and DeFi partnerships, potentially driving demand. The end of litigation reduces regulatory risk, likely boosting investor confidence, liquidity, and price stability, pointing to a bullish outlook for XRP.