The Conclusion of a Landmark Legal Battle
The protracted legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has officially come to an end. In a joint filing on Thursday, both parties requested that a federal appeals court dismiss their respective appeals, effectively concluding the years-long disagreement over whether the XRP token should be classified as a security.
This landmark development was announced by Ripple’s chief legal officer, Stuart Alderoty, on X (formerly Twitter), who simply stated, “The end…and now back to business.” This resolution removes a major regulatory cloud that has weighed on XRP’s price and market sentiment for years, paving the way for a new era of clarity and stability for the token.
Judge Torres’s Ruling Becomes Final
With the appeals process now officially abandoned, the original ruling delivered by New York federal judge Analisa Torres in July 2023 is now the final legal precedent. Judge Torres had made a significant distinction, ruling that XRP sold on public exchanges did not meet the definition of a security under U.S. law. However, she also found that the tokens sold directly to institutional investors by Ripple were sold as unregistered securities.
The judge later ordered Ripple to pay a fine of $125 million, an amount far less than the $2 billion the SEC had initially requested. This finality provides a clear legal framework for how cryptocurrencies might be classified in the future, marking a major victory for Ripple and the broader crypto industry.
The SEC’s Expected Shift in Enforcement
The SEC’s decision to dismiss its appeal was not entirely unexpected by the market. The lawsuit was originally filed during Donald Trump’s first administration, but in his second term, Trump had promised to curtail regulatory enforcement against crypto companies. This shift in policy has already been evidenced by the SEC abandoning multiple other lawsuits against crypto firms. As early as April, the SEC and Ripple had filed a joint motion to pause the appeals process, a move that hinted at an impending settlement. This was further solidified in May when both parties reportedly reached an agreement, although a subsequent request to Judge Torres to dissolve the injunction and lower the fine was denied in June. The final dismissal of the appeals now formalizes this shift, bringing a definitive end to the legal saga.
XRP’s Price Surges as Uncertainty Lifts
The anticipation of a settlement has served as a major catalyst for XRP’s price rally in recent months. The token’s value has risen nearly 99% from its 2025 low of $1.79 on April 9 to a peak of $3.56 on July 22. As the legal uncertainty was removed, XRP’s price saw a significant boost. The token briefly fell back below the psychological $3 level but has since rallied by 10.6% in the past day, reaching $3.31. This strong price action is a direct reflection of investor optimism, as the threat of a prolonged legal battle has been eliminated, allowing traders to focus on the token’s fundamentals and its potential for future growth.
The Korean Market’s Pivotal Role in the Rally
High-volume buying activity on Korean exchanges, particularly Upbit, played a pivotal role in XRP’s recent rally. Upbit, one of the largest cryptocurrency exchanges in South Korea, processed over $95 million in XRP trades, which accounted for the bulk of the upward price movement. This strong interest from the Korean market highlights the global nature of crypto trading and the significant impact that regional markets can have on a token’s price. Concentrated buying pressure, especially from a large and active retail investor base, can act as a powerful catalyst, breaking through resistance levels and driving price discovery in a short period.
The Impact of ETF Filings on Sentiment
The filing of a Bitcoin-XRP ETF application by Japan’s SBI Holdings, a major financial player, is another significant event contributing to the bullish sentiment around XRP. ETF filings create a new narrative for a token, signaling institutional interest and the potential for broader adoption. This development, combined with the SEC’s deliberation on Ripple’s appeal, creates a confluence of positive news that can attract a wide range of investors. ETF approval would not only provide a new investment vehicle but would also legitimize XRP as a mainstream asset, potentially leading to a massive influx of capital from institutional sources that were previously on the sidelines due to regulatory uncertainty.
Consolidation and Future Outlook
While XRP’s recent upward movement was strong, the asset’s consolidation between $2.98 and $3.00 into the session close indicates that the market is now digesting the recent gains. This period of consolidation is a natural part of a market cycle, where buyers and sellers find a new equilibrium before the next directional move.
For XRP to continue its rally, it will need to find fresh buying pressure to break through and hold above its recent highs. The formal end of the legal battle will likely serve as the next major catalyst, which could either propel the price higher or lead to a pullback if the market reacts unfavorably to the fine or other lingering factors.
A New Era for XRP
The formal dismissal of the appeals in the Ripple-SEC lawsuit marks a new era for XRP. The legal clarity provided by Judge Torres’s ruling, combined with a significant price rally, international institutional interest, and strong buying pressure from key markets, positions XRP for sustained growth. The token has now moved beyond its legal challenges to focus on its fundamentals and utility in the global payments landscape.
As the crypto market continues to mature, XRP’s newfound regulatory certainty and growing institutional support make it a compelling asset to watch in the coming months, signaling a departure from a period of litigation and a return to business.
Read more: XRP ETF Investment Boom: CBOE Seeks Fast-Track Approval
