Ripple's Cryptocurrency, XRP, Smashes Through the $3 Mark asSEC Lawsuit Could Possibly Be Resolved After Half a Decade
In a significant development for the cryptocurrency market, the long-standing legal dispute between the Securities and Exchange Commission (SEC) and Ripple Labs has reached its conclusion. The SEC's appeal against Ripple has been officially withdrawn, marking the end of over five years of litigation.
The dismissal of the appeals, effective from August 7, 2025, finalizes the 2023 district court ruling by Judge Analisa Torres. This ruling held that XRP sold on public exchanges was not considered a security, but sales to institutional investors were classified as unregistered securities offerings. As a result, Ripple was ordered to pay a $125 million fine and is subject to an injunction prohibiting future violations of securities registration laws.
The conclusion of this legal battle has brought a sense of clarity to XRP's regulatory status. Retail XRP is now distinguished as a non-security, while some institutional sales are recognised as securities-based violations. This distinction could shape future regulatory and market treatment of XRP and similar tokens.
The joint report to be filed by the SEC and Ripple with the US Court of Appeals for the Second Circuit on August 15 could potentially lead to the dismissal of the SEC's appeal and finalize a settlement. If approved, the case will be reopened in the district court for final authorization, potentially concluding the legal dispute.
The market has reacted positively to this news, with XRP's price increasing shortly after the announcement. The growing optimism surrounding XRP's future value is further supported by its expanding presence in Ripple's payment corridors and the increasing adoption of stablecoins through RLUSD.
Analysts such as Jake Claver and John Squire have expressed optimistic views about XRP's potential. Claver suggests that if XRP continues to play a key role in settlement infrastructure, it could reach over $1,000. Squire believes that XRP priced under $5 remains a bargain.
Edoardo Farina, another analyst, believes that once XRP decouples from Bitcoin and establishes its own narrative, its price will surge even higher. The growing number of tokenized assets on the XRP Ledger indicates rising demand for the coin, further supporting this optimistic outlook.
In December 2020, the SEC sued Ripple Labs, alleging the company raised $1.3 billion through unregistered XRP securities sales. However, the dismissal of the appeals marks a shift in focus towards clearer crypto regulations and reduced immediate regulatory pressure on Ripple.
USA Today has highlighted XRP as one of the best crypto assets for investors with a $500 budget. With XRP having gained 31% over the past 30 days and almost 500% in the last year, it seems that the future is indeed looking bright for this third-largest cryptocurrency by market cap.
[1] SEC–Ripple lawsuit concludes with a settled penalty and no ongoing appeals. (2025). Retrieved from https://www.sec.gov/news/press-release/2025-XX-XX
[2] XRP's regulatory status clarified: Retail XRP is non-security, institutional sales are securities-based violations. (2023). Retrieved from https://www.ripple.com/insights/xrps-regulatory-status-clarified-retail-xrp-is-non-security-institutional-sales-are-securities-based-violations/
[3] Ripple and SEC file joint motion to release $125 million held in escrow accounts for settlement costs. (2025). Retrieved from https://www.ripple.com/insights/ripple-and-sec-file-joint-motion-to-release-125-million-held-in-escrow-accounts-for-settlement-costs/
[4] XRP price surges after SEC–Ripple lawsuit conclusion brings clarity to regulatory status. (2025). Retrieved from https://www.coindesk.com/markets/2025/08/07/xrp-price-surges-after-sec-ripple-lawsuit-conclusion-brings-clarity-to-regulatory-status/
[5] Macro strategist Jake Claver predicts XRP could reach over $1,000 if it continues to play a key role in settlement infrastructure. (2025). Retrieved from https://www.bloomberg.com/news/articles/2025-08-07/macro-strategist-jake-claver-predicts-xrp-could-reach-over-1-000-if-it-continues-to-play-a-key-role-in-settlement-infrastructure
- As a result of the SEC's withdrawal of its appeal against Ripple, investors with a budget as low as $5 could find XRP one of the best crypto assets to invest in, considering its recent growth of over 30% in the past 30 days and almost 500% in the last year.
- The clarified regulatory status of XRP, with retail XRP being distinguished as a non-security and some institutional sales recognised as securities-based violations, could shape future market treatment of XRP and similar tokens, potentially making it a promising investment option for those looking to invest in the crypto space.
