Breaking: SEC Drops XRP Lawsuit Bombshell—Appeal Decision Looms as Market Holds Its Breath

The SEC just fired another salvo in its war against Ripple—filing a cryptic status report while the crypto world waits for an appeals court to drop the hammer.

Here’s what’s at stake:

-
Regulatory Roulette
: The SEC’s latest move keeps traders guessing—will XRP get crushed or moon? Nobody knows, but lawyers are getting rich either way.

-
Appeal Anxiety
: Judges haven’t greenlit the SEC’s appeal yet, but that hasn’t stopped the agency from flexing its paperwork muscles. Classic bureaucracy meets crypto chaos.

-
Market Whiplash
: XRP price barely blinked—proof that crypto markets now treat SEC lawsuits like bad Twitter memes. (Meanwhile, Wall Street still panics over inflation tweets.)

Bottom line: This legal circus won’t end soon. But hey—at least it’s more entertaining than watching the SEC chase after NFT monkeys.

TLDR

• The SEC and Ripple have filed for the dismissal of their respective appeals.

• The dismissal of appeals is pending court approval before the case is fully resolved.

• The SEC’s recent status report updates the court on progress in the XRP lawsuit.

• Ripple must pay a $125 million penalty, but XRP is not considered a security.

The long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has seen a significant development. Both parties filed a joint request to dismiss their respective appeals in the XRP lawsuit. While experts have speculated that the case is nearly over, a crucial step remains: the approval of the joint dismissal by the U.S. Court of Appeals. As of August 16, 2025, the SEC has filed a status report with the court, detailing the progress in the case and awaiting the court’s formal approval to end the lawsuit.

This legal saga, which began in December 2020, has involved intense scrutiny of whether Ripple’s XRP token qualifies as a security. If the appeals are dismissed and the court signs off, it would mark a pivotal moment for both Ripple and the broader cryptocurrency industry, which has been eagerly awaiting the resolution of the case.

Ripple and SEC Agree to Dismiss Appeals

On August 7, Ripple and the SEC made a joint filing to withdraw their respective appeals, signaling the potential end of one of the most high-profile lawsuits in the cryptocurrency world. The legal teams for both parties agreed to dismiss the appeals and requested that the court officially close the case. Despite this, the dismissal is still pending approval by the Court of Appeals.

Ripple’s legal team, including its chief legal officer Stuart Alderoty, noted that the dismissal of the appeals WOULD uphold Judge Torres’ previous ruling, which concluded that XRP was not a security in secondary trading.

However, Ripple must still adhere to certain conditions. Specifically, the company must pay a $125 million penalty for institutional sales of XRP. This penalty is considerably lower than the initial $2 billion figure discussed earlier in the case.

SEC Files Status Report to Court of Appeals

The SEC has now submitted a status report to the Court of Appeals, updating the court on the progress of the case and the status of the joint stipulation for dismissal. This filing comes as part of an ongoing effort to ensure the case is officially concluded.

While the parties agreed to dismiss their appeals, the court’s approval is still required before any official closure of the case.

The SEC’s report also touches on the previous discussions regarding the penalty Ripple must pay, as well as the reallocation of the fine. Ripple had proposed a new distribution of the penalty amount, but this was rejected by Judge Torres. The SEC’s status report confirms that Ripple and the SEC have now reached an agreement on the matter, but they are still waiting for the court’s final decision to close the case.

Court Approval Remains the Final Step

Despite the joint agreement to dismiss the appeals, the case will not be officially closed until the Court of Appeals signs off on the stipulation. The court’s decision on this matter is crucial, as it will mark the formal end of the Ripple vs SEC lawsuit. Until then, the legal proceedings remain in a state of limbo.

Ripple, in its defense, has argued that XRP should not be classified as a security, and recent rulings have supported that position for secondary market trading.

However, certain institutional sales of XRP are still subject to securities laws. Once the court approves the dismissal, Ripple will MOVE forward with the required penalty payments, and the company will be allowed to conduct future business under the agreed terms.