The U.S. Securities and Exchange Commission (SEC) has officially ended its nearly five-year lawsuit against Ripple Labs, marking a major milestone for cryptocurrency regulation. The case, which began in 2020, alleged that Ripple had raised $1.3 billion through unregistered XRP sales. On August 7, 2025, both parties agreed to drop their appeals, closing the chapter.
SEC Commissioner Hester Peirce noted that with litigation behind them, the agency can now focus on drafting a clear regulatory framework for digital assets. SEC Chair Paul Atkins emphasized the need for rules that balance innovation with investor protection.
The legal saga saw Ripple fined $125 million in 2024, and a 2023 ruling determined that XRP sales to retail investors are not securities, while institutional sales are. This distinction provides clarity for the industry.
Meanwhile, lawmakers are pushing the CLARITY Act, aiming to establish comprehensive rules for digital assets by September 30, 2025. Political divisions remain, with Republicans largely supporting the bill and Democrats, led by Maxine Waters, opposing it over concerns about a U.S. digital currency.
With the Ripple case concluded, everyday crypto trading faces less uncertainty, and the SEC is positioned to craft regulations that could help the U.S. remain competitive in the global digital asset market.
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