XRP Price Rises as Ripple Ends Five-Year US SEC Lawsuit

Key Insights:

• XRP price jumped more than 7%, boosting market optimism.
• Ripple and the SEC jointly dismissed all appeals, ending a five-year lawsuit.
• Ripple agreed to pay a $125 million penalty ordered by Judge Torres.

The five-year legal battle between Ripple and the US Securities and Exchange Commission ended after a federal appeals court approved the dismissal of both parties’ appeals. The decision closed one of the longest disputes in the digital asset sector.

XRP price rose following the announcement, as traders reacted to the removal of uncertainty surrounding the long-running legal battle.

Ripple SEC Case Ends: Details

Defense attorney James Filan said on X that the Second Circuit approved the joint stipulation of dismissal. The US SEC had filed an appeal while Ripple, along with executives Brad Garlinghouse and Chris Larsen, had filed a cross-appeal.

Both sides agreed to withdraw their claims earlier this month, but the agreement required court approval before becoming final. Now, with the approval given, XRP price has recorded a robust rally.

The Commission initiated its case against Ripple in December 2020, alleging the company raised funds through unregistered securities sales involving XRP. The case drew significant attention as it raised broader questions about how US securities law applies to tokens.

With the approval finalized, Ripple will now resolve its penalty obligations. Judge Analisa Torres had ordered the company to pay $125 million.

That sum was held in escrow until appeals were completed. Although both parties had once agreed on a reduced $50 million settlement, Torres declined to issue an indicative ruling to support the reduction.

The court’s decision confirmed the higher amount.

XRP Price Reacted to the Development

The XRP price traded around $3.05 at press time, up more than 7% over 24 hours according to TradingView data. The increase followed the news that Ripple no longer faced prolonged legal uncertainty.

Market participants had long viewed the lawsuit as a factor limiting adoption and institutional involvement in XRP.

The end of the case could affect pending financial products linked to the token. The SEC postponed five separate applications for XRP exchange-traded funds earlier this year.

The deadline for a decision on Grayscale’s proposal, the first spot XRP ETF, falls on October 18. Market analysts said the lawsuit’s resolution removed a key obstacle that could influence the SEC’s review process.

This has also bolstered market sentiment towards a continuing rally in XRP price in the near future.

Meanwhile, the token’s reaction mirrored earlier instances when favorable legal updates drove short-term gains. Traders have closely followed the correlation between case progress and price action since 2020.

Analysts said the removal of legal pressure could shift attention to broader adoption and market dynamics instead of court proceedings.

What’s Next for Ripple and XRP Price?

Legal observers said the conclusion brought clarity to both Ripple and the SEC. Attorney John Deaton, who filed an amicus brief in 2021 on behalf of XRP holders, called the case “from hell” in a reaction on X.

Deaton and others argued the SEC’s original stance misrepresented XRP as a security across all transactions. Attorney Fred Rispoli confirmed that the approval marked the definitive end of the dispute.

He said the Commission was now expected to handle remaining ETF applications without the overhang of the lawsuit.

For Ripple, the settlement clears the path to expand its cross-border payment services without distraction. The company had continued building partnerships during the litigation, but executives acknowledged that the unresolved case constrained progress.

For XRP holders, the case’s conclusion clarified that secondary sales of the token did not constitute securities transactions under US law. Analysts said this distinction could serve as a precedent for future disputes involving other tokens.

At press time, XRP price traded higher after the court’s approval, reflecting renewed optimism. The focus now turns to whether institutional products such as ETFs gain regulatory clearance.

The decision in October could shape the next stage of XRP price, especially amid optimism over growing adoption in the US market.