SEC Files Final Update as Ripple Lawsuit Reaches Concluding Stage

Highlights:

• The Ripple lawsuit nears closure after both parties recently dismissed appeals.
• SEC filed a status report confirming the joint dismissal.
• Court approval is the final step to officially close the case.

The Ripple lawsuit is reaching a potentially final point after almost five years of back and forth in court. Ripple and the U.S. Securities and Exchange Commission (SEC) submitted jointly to dismiss their respective appeals early this month. On August 16, a former federal prosecutor, James K. Filan, revealed that the SEC had filed a status report with the Second Circuit. This was in accordance with an earlier court ruling that would see an update by that date. The report released by the SEC approved the joint dismissal motion and described the ongoing process to settle the case.

#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

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 15, 2025

SEC’s Status Report Confirms Joint Appeal Dismissal

The recent request by the SEC in the U.S. Court of Appeals is an important procedural step. On April 16, the SEC demanded a 60-day delay in the proceedings to discuss a settlement with Ripple. The request was granted, with the court directing the SEC to report back by June 16. With an unsuccessful effort to rectify the initial decision of Judge Analisa Torres, both partners changed their course. They fixed procedural problems and rolled back appeals, as the judge suggested.

In the joint filing, both parties had agreed to bear their own legal expenses. Ripple now faces a $125 million fine, a drop from the original $2 billion the SEC first aimed for. The court, however, did not remove the permanent injunction on Ripple’s future institutional XRP sales. Ripple now needs to report any such sales to the SEC in case it decides to proceed with them.

SEC chair Paul Atkins recently stated that the outcome marks a turning point in crypto regulation in the U.S. He termed the dismissal as a possible regulatory reset, which would pave the way to more transparent digital asset frameworks.

Commissioner Peirce is right. With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table. Our focus should be on building a clear regulatory framework that fosters innovation while protecting investors. #ProjectCrypto

— Paul Atkins (@SECPaulSAtkins) August 11, 2025

Ripple Lawsuit Awaits Final Approval From the Appellate Court

Even though both sides dropped their appeals, the court still hasn’t fully closed the case against Ripple. The Second Circuit would have to approve the joint motion to close the case. This is a procedural step that is needed to aid in a formal determination of the matter. The case started in December 2020 when the SEC alleged Ripple Labs had raised $1.2 billion in unregistered XRP sales. The case has shaped the perception of regulators and investors towards digital assets over the years. The court already made it clear that XRP, by itself, doesn’t count as a security.

Having cleared the alleged broader abuse when it comes to XRP tokens, Ripple is likely to proceed with new projects. Legal experts say the court will likely treat the next step as a formality and approve the dismissal right away. The update has received a positive reaction in the market. XRP’s price has seen a surge of 3.50% over the past 24 hours. In addition, a recent analysis suggests XRP could rally to $4.67 as whales massively accumulate the token.