Key Takeaways
When did the court make its ruling?
In July 2023, Judge Analisa Torres ruled that XRP is not a security in retail trading but is a security in institutional sales.
What penalty did Ripple face?
Ripple paid a $125 million fine in 2024, and the case officially ended in August 2025, with no personal penalties for its executives.
When the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in December 2020, it ignited one of the most defining legal battles in crypto history.
The main reason behind the battle
The case, centered on whether Ripple [XRP] should be classified as a security, became a test for how U.S. law applies to digital assets.
Accused of raising $1.3 billion through unregistered security sales, Ripple’s defense not only challenged the SEC’s stance but also set the stage for a broader debate on crypto regulation.
Years later, the court’s split ruling, declaring XRP not a security in public trading but a security in institutional sales, has reshaped the conversation around how cryptocurrencies are classified and governed in the United States.
For years, the case created uncertainty that weighed on XRP’s price, but momentum shifted in July 2023 when Judge Analisa Torres ruled that XRP was not a security in retail trading but was in institutional sales.
This split decision marked the first U.S. court distinction between retail and institutional crypto transactions, providing long-awaited legal clarity for the industry.
XRP price action throughout the legal battle
Following the ruling, XRP regained momentum as confidence returned to the market. Delisted exchanges reinstated trading, and investor interest surged.
In 2024, Ripple settled with a $125 million fine, and by August 2025, both parties dismissed their appeals, ending the years-long legal battle.
Ripple remained restricted in institutional XRP sales but faced no executive liability.
The market reacted strongly, XRP hit an all-time high of $2.99 in January 2025, and rose another 8–10% after the SEC dropped its appeal in March. As of press time, it traded near $2.21, solidifying its position among top altcoins.
Analysts like Ali Martinez even see a realistic target around $12.60, citing renewed confidence now that the SEC case is settled.
The ruling set a key legal precedent, clarifying that crypto classification depends on how tokens are sold, not just their design, a blueprint now shaping future digital asset regulation.
What happened after the SEC vs. Ripple battle?
The verdict gave Ripple crucial breathing room.
And, now with the case behind it, the company is refocusing on global payments, partnerships, and expansion into clearer regulatory markets.
In short, the SEC vs. Ripple case may be over, but its impact continues to shape the future of XRP and broader crypto regulation.
While Ripple gained crucial legal clarity, lingering restrictions on institutional sales and uneven global rules still pose challenges.
Optimism is once again building around XRP as ETF momentum accelerates.
Several XRP-linked funds are already attracting strong inflows. For instance, the Rex-Osprey XRP ETF, at press time, held over $114.6 million in assets, while Teucrium’s leveraged XRP fund has grown to $384.4 million since April.
Meanwhile, major asset managers such as Grayscale, Bitwise, CoinShares, WisdomTree, ProShares, Tuttle Capital, and 21Shares also have XRP ETF proposals awaiting approval.
Adding to the excitement, Canary Capital’s Spot XRP ETF is moving closer to launch, signaling growing mainstream confidence in Ripple’s comeback.