SEC’s Case Against Ripple Finally Over & XRP Witnesses Breakout

The years-long legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), which was a pivotal case instrumental in defining the regulatory status of XRP and the whole digital asset industry, has finally ended.

The case was concluded when both parties filed a Joint Dismissal of the appeals before the U.S. Court of Appeals for the Second Circuit.

Started in December 2020, the case remained unsolved until 2025, witnessing various hearings, appeals, suspensions, market fluctuations, and partial judgments. Despite being late, the dismissal of the case signifies the emergence of a more stable environment from a regulatory and operational perspective for the cryptocurrency industry.

The possibility of the dismissal of the case after both parties agree to drop their appeals was suggested by various market experts since the beginning of the case. However, the issue became complex over the years, and authorities understood the need for clear regulatory frameworks for crypto, rather than quick enforcement action.

Ripple CLO Stuart Alderoty Urges Restricting Permanent SEC Control Over Crypto

Various blockchain experts and law experts have vocally criticized the over-engagement of the SEC with cryptocurrencies, particularly citing the XRP lawsuit, which delayed the development of Ripple into a potential network and also contributed to XRP’s bear trend on charts.

On August 5th, 2025, Ripple’s chief legal officer, Stuart Alderoty, criticized this over-engagement by mentioning a draft U.S. bill that grants the SEC excessive powers. According to him, the draft creates more ambiguity than clarity and brings most crypto projects into SEC-administered gatekeeping.

With the changes in the hostile environment at the SEC for crypto due to the arrival of a new administration, Alderoty proposes a “safe harbour” rule to clarify in which context a digital asset can be considered as a security or a commodity. According to him, instead of patchworking established state-level rules, a unified approach is needed for the industry to thrive.

What Does the Lawsuit Closure Mean for XRP?

Since XRP is not primarily intended for investment but for cross-border payments, which distinguishes it from traditional securities, the use cases of the network are expected to witness growth rather than being a mere investment asset. The gradual ecosystem growth will naturally help XRP increase its market cap.

Also Read: XRP Price Prediction 2025-2050: Short Term and Long-Term Predictions

Market and regulatory frameworks observers opine that federal clarity will prevent the fragmentation of regulations, and it will give confidence to future investors and entrepreneurs, ensuring growth to XRP and the entire blockchain industry.

XRP’s Current Market Scenario

Following the filing, XRP is 12% up today, nearing the $200 billion market cap again. It is in its highest phase, considering the market cap, but it is 13,.24% down from the all-time high of $3.84 it achieved in 2018 (7 years ago), due to the token unlocks. It is above the 200-day simple moving average, and has exhibited 18 green days in the last 30 days.

• Fear & Greed Index: 74 (Greed)
• Market Sentiment: Bullish
• Volatility: 9.24% (High)
• Supply Inflation: 7.00% (High) 
• Dominance: 5.08%

Also Read: Best Crypto to Buy in 2025: Top 3 XRP Alternatives to Watch for Maximum Profit

About Ripple

Launched in 2012, Ripple, aka the XRP Ledger (XRPL), is a blockchain-based decentralized protocol that provides fast and low-cost global payment solutions. It can be used by individuals, businesses, and governments for purposes such as cross-border payments, stablecoin issuance, and blockchain-based services. The native currency of Ripple is $XRP, which governs the XRP Ledger.