Court Ends Ripple vs. SEC Case: Market Prepares for XRP ETF
Date: 2025-08-25 Author: Henry Casey Categories: BUSINESS
The protracted litigation between Ripple Labs and the U.S. Securities and Exchange Commission has come to an end. On August 22, the Second Circuit Court put an end to the case by rejecting all appeals and affirming that trading XRP on public exchanges does not fall under the definition of a sale of securities. This brings to an end a dispute that began back in December 2020, when the regulator accused the company of illegally raising $1.3 billion through unregistered token offerings.
The legal battle, which lasted almost five years, cost Ripple more than $100 million. The hostile policies of the SEC under Gary Gensler and the Biden administration complicated the situation. The turning point came in July 2023, when Judge Analisa Torres ruled that retail sales of XRP were legal, but called institutional offerings a violation of securities laws. Appeals by both sides have extended the uncertainty for years.
Political changes in the United States with the return of Donald Trump and the appointment of a more crypto-friendly SEC leadership created the conditions for dialogue. By March, Ripple CEO Brad Garlinghouse announced a preliminary agreement involving a $50 million fine and the withdrawal of appeals. However, the court did not accept these terms. In early August, the parties again compromised, agreeing on a fine of $125 million. The court upheld this decision, which allowed the case to be finally dismissed.
At the same time, Judge Torres' key assertion - that "XRP itself is not a security" - remains legally significant. Analysts believe that this will form the basis for the formation of future rules and will influence the development of cryptocurrency products.
The end of the conflict immediately gave impetus to applications for investment instruments. On the same day, seven asset managers, including Grayscale, Franklin Templeton, Bitwise, CoinShares, WisdomTree, 21Shares, and Canary, updated their spot XRP ETF filings. NovaDius Wealth President Nate Geraci noted that the massive activity indicates the market is ready for SEC approval.
At the same time, attorney John Deaton reminded that key dates fall in October: the SEC will review Grayscale's filing on the 18th and WidomTree's on the 25th. If the process is similar to the Bitcoin ETF approval, trading of the new funds could start within a few days. However, delays are possible if the regulator requires additional disclosures, as was the case with the Ethereum ETF.
The news caused a sharp increase in interest in the token. According to BeInCrypto, the XRP rate rose by 4% in 24 hours to $3.01. Market participants believe that the launch of the ETF could increase demand for the asset and give it additional impetus.
