The U.S. Securities and Exchange Commission (SEC) and Ripple have taken a step further to end their long-standing legal dispute. However, the final closure of the case still requires court approval.
On August 15, the SEC submitted a status report to the Court of Appeals confirming that both parties have agreed to withdraw their legal appeals and bear their own costs. This joint move indicates that the nearly five-year lawsuit is essentially concluded.
SEC-Ripple Settlement Requires Court Approval
However, the Ripple-SEC settlement cannot take effect until the Court of Appeals officially accepts the parties' agreement to withdraw appeals. Until that approval is granted, the case remains technically open.
Industry observers describe the recent document filing as primarily procedural.
#XRPCommunity #SECGov v. #Ripple #XRP The @SECgov has filed a status report with the Court of Appeals noting that the parties have filed a Joint Stipulation of Dismissal of the appeals and that the stipulation remains pending and therefore awaiting approval by the Court. pic.twitter.com/X74wFRhswq
โ James K. Filan ๐บ๐ธ๐ฎ๐ช (@FilanLaw) August 15, 2025
Pro-XRP lawyer Bill Morgan mentioned that the final order could come from Judge Torres at any time, which would officially close the dispute.
The SEC first filed a lawsuit against Ripple in December 2020, claiming the company raised $1.3 billion by selling XRP tokens without registering them as securities.
In a landmark ruling in July 2023, Judge Analisa Torres ruled that selling XRP to retail investors does not constitute securities trading. She also determined that sales to institutional investors are subject to securities laws.
As a result, the court ordered Ripple to pay a $125 million fine to the financial regulatory agency for securities law violations.
Nevertheless, cryptocurrency supporters view the court's approval as an industry milestone. According to them, this resolution could serve as a benchmark for how other digital assets are treated under U.S. law.
Meanwhile, XRP supporters expect the official withdrawal of appeals will enable institutional investors, banks, and exchange-traded funds to trade with the token. Particularly, XRP has gained significant institutional breakthrough as the SEC case nears resolution.
Therefore, with appeals now on the verge of withdrawal, the outcome promises greater regulatory clarity and could encourage broader participation of XRP across the institutional sector.
