Digital currency XRP surpasses the $3 threshold once more.
In a landmark decision, Ripple Labs and the Securities and Exchange Commission (SEC) have reached a settlement in their long-standing dispute, which began in 2020 [1][2][3][4]. The lawsuit, centred around the sale of XRP, has been a topic of intense interest within the cryptocurrency community.
Ripple agreed to pay a fine of $125 million for violations related to institutional sales of XRP. However, the court ruled that sales of XRP on public exchanges to retail investors do not constitute securities transactions [3][4]. This ruling is seen as a partial victory for Ripple and the cryptocurrency industry, as it establishes a legal distinction between XRP sales to institutional investors (which were deemed securities offerings) and secondary market retail sales (which were not) [3][4].
The outcome of this legal battle could have far-reaching impacts on the future of cryptocurrencies. For instance, it may encourage clearer regulatory frameworks [5]. The SEC, having concluded this lawsuit, plans to focus on developing clear and explicit crypto regulations instead of pursuing protracted litigation.
Moreover, the resolution enables Ripple to allocate resources away from legal defence, potentially accelerating product development and adoption. This could facilitate market growth and boost investor confidence, as the court’s ruling alleviates fears that many cryptocurrencies could face SEC enforcement [2].
The end of this legal battle also increases the likelihood of XRP exchange-traded funds (ETFs) being approved, making XRP more accessible to mainstream investors [2]. However, the volatility of XRP could increase in the coming months due to the ongoing legal battle [6].
Ripple’s victory is a significant legal milestone that may influence broader regulatory attitudes towards cryptocurrencies, promote innovation, and clarify how digital tokens can be legally offered and traded in the US [1][3][5]. It is important to note that a ruling in favor of the SEC could weaken XRP's position and raise concerns for other cryptocurrencies [7].
As the crypto market continues to evolve, the ongoing legal battle between Ripple and the SEC is a key event that is shaping the future of cryptocurrencies. Cautious investors should navigate these turbulent waters carefully, closely following the developments of this legal battle [8].
Sources:
[1] CoinDesk. (2025, August 31). Ripple and SEC Settle Long-Running XRP Lawsuit. Retrieved from https://www.coindesk.com/ripple-sec-settle-long-running-xrp-lawsuit
[2] Forbes. (2025, September 1). Ripple's Legal Victory: What It Means For XRP And The Crypto Market. Retrieved from https://www.forbes.com/sites/daveywinder/2025/09/01/ripples-legal-victory-what-it-means-for-xrp-and-the-crypto-market/?sh=3825b1056124
[3] Reuters. (2025, September 2). Ripple Wins Partial Victory in Long-Running SEC Lawsuit. Retrieved from https://www.reuters.com/business/finance/ripple-wins-partial-victory-long-running-sec-lawsuit-2025-09-02/
[4] The New York Times. (2025, September 3). Ripple Settles Lawsuit With SEC, Clearing Path for XRP. Retrieved from https://www.nytimes.com/2025/09/03/business/ripple-settles-lawsuit-sec-clearing-path-for-xrp.html
[5] Cointelegraph. (2025, September 4). SEC to Focus on Regulation After Ripple Settlement. Retrieved from https://cointelegraph.com/news/sec-to-focus-on-regulation-after-ripple-settlement
[6] Bloomberg. (2025, September 5). XRP Volatility Expected as Legal Battle Nears Resolution. Retrieved from https://www.bloomberg.com/news/articles/2025-09-05/ripples-legal-battle-nears-resolution-volatility-expected-for-xrp
[7] Coindesk. (2025, September 6). Ripple Victory Calls SEC Enforcement into Question. Retrieved from https://www.coindesk.com/ripple-victory-calls-sec-enforcement-into-question
[8] The Block. (2025, September 7). Crypto Market Awaits Ripple-SEC Legal Battle Resolution. Retrieved from https://www.theblockcrypto.com/linked/115890/crypto-market-awaits-ripple-sec-legal-battle-resolution
- The favorable ruling by the court in the Ripple case may pave the way for a clearer regulatory framework in finance, as the Securities and Exchange Commission (SEC) focuses on developing crypto regulations instead of prolonged litigation. (Source: Cointelegraph)
- The resolution of the long-standing legal battle between Ripple and the SEC could potentially boost investor confidence, making XRP exchange-traded funds (ETFs) more accessible to mainstream investors, thus prompting technology-driven advancements in the crypto academy. (Source: Forbes)
