The XRP lawsuit has finally concluded after the U.S. Second Circuit Court of Appeals approved a joint motion to dismiss all outstanding appeals between Ripple and the Securities and Exchange Commission (SEC). This decision puts an end to a prolonged four-year legal conflict that has weighed heavily on the crypto sector since late 2020.

Final ruling in Ripple’s favor closes one of crypto’s most high-profile lawsuits.

Ripple’s Legal Victory Over the SEC

The dispute began in December 2020 when the SEC filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse, and Executive Chairman Chris Larsen, accusing them of executing an unregistered securities offering through the sale of XRP. Ripple countered that XRP functioned as a currency rather than a security. This legal standoff quickly became a central issue in the ongoing regulatory debate over how digital assets should be classified.

The legal climax came on August 7, 2025, when both Ripple and the SEC submitted a joint motion to dismiss the case—backed by a formal Commission vote. On August 22, the Second Circuit officially endorsed the motion, ending all litigation. The ruling confirmed that XRP will not be considered a security, with both parties agreeing to cover their own legal fees.

Market Reaction and Analyst Outlook

While the resolution marked a major milestone, the immediate market response was relatively muted. As of press time, XRP had risen less than 1%, hovering around $3.07. Even so, Ripple’s Chief Legal Officer, Stuart Alderoty, called the resolution a defining moment for the broader crypto community, lifting a cloud of regulatory uncertainty and opening the path for future development.

The decision strengthens Ripple’s standing among blockchain firms like Coinbase that have resolved enforcement actions with the SEC. Moreover, it reaffirms investor confidence at a time when regulatory clarity is paramount.

ETF Approval Odds Climb

Speculation over an eventual green light for an XRP exchange-traded fund (ETF) is growing. Earlier this year, Bloomberg analysts Eric Balchunas and James Seyffart initially gave a 65% probability for approval of a spot XRP ETF in the U.S.

This projection seesawed throughout the year. Prediction market Polymarket showed approval odds climbing as high as 98% in early June but dipping by 10% after the SEC postponed decisions on several applications. Despite that dip, the same Bloomberg analysts later revised their forecast up to “90% or higher” by June 20.

Polymarket traders were less optimistic after SEC Commissioner Caroline Crenshaw voted against the approval. Following the disclosure of her dissent, the platform’s approval odds fell to 62% in early August. However, Balchunas quickly pushed back, stating on X that Crenshaw’s opposing vote held little weight since she was isolated in her stance:

“Interesting, trades reporting how Polymarket odds of XRP ETF approval went down to 62% after the votes were disclosed showing Crenshaw voting no, but a) she’s gonna vote no on EVERYTHING and b) it’s meaningless, she’s outnumbered = we haven’t changed our odds, still at 95%.”

Conclusion: Ripple’s Win Signals Regulatory Shift

The conclusion of the XRP lawsuit marks a pivotal event in the evolution of digital asset regulation. By reaffirming that XRP is not a security, the ruling offers precedent and regulatory clarity that will likely benefit other projects navigating similar scrutiny.

Related: XRP Price: $12M Max Pain for Bears

As the crypto landscape evolves, Ripple now joins a short list of companies that have successfully confronted the SEC and emerged stronger. With potential ETF approvals on the horizon and market conditions stabilizing, XRP’s journey in the regulatory spotlight transitions to what could be a more opportunity-rich chapter.