June 5, 2025 – The legal battle between Ripple Labs and the US agency SEC (Securities and Exchange Commission) that has been going on since December 2020 is now close to ending. This case is about whether Ripple’s XRP token is an unregulated security or not. Recent developments have again created a stir in the crypto world.
Beginning of the case
In December 2020, the SEC sued Ripple, its CEO Brad Garlinghouse, and co-founder Christian Larsen. It was alleged that they raised $1.3 billion** by selling XRP tokens without registration. In July 2023, the court ruled that selling XRP to the general public would not be considered a security, but selling it to large investors was illegal. The court imposed a fine of $125 million on Ripple, which was much less than the $2 billion demanded by the SEC.
Recent Events
In March 2025, the SEC withdrew its appeal against the first decision. Ripple also withdrew its appeal. The two parties agreed on a new fine of $50 million. The remaining $75 million was to be returned to Ripple.
But on May 15, 2025, the court rejected the agreement, saying there was some legal error in the papers. Ripple’s lawyer Stuart Alderoty said it was only a technical mistake, and the earlier court rulings are still valid.
On April 8, 2025, a third person Justin Keener asked the court for permission to present new evidence that could benefit XRP. The SEC opposed it. The court has not yet given a decision on this.
The count down to the date the SEC must report to the Appeal Court is now 12 days. Something has to happen by then or the Appeal and Cross-appeal continues and a briefing is due from Ripple. said XRP attorney Bill Morgan
Market impact
After the SEC withdrew the appeal in March, the price of XRP rose 10% to $2.52. But after the settlement was rejected, it has remained stable between $2.15 and $2.45. Some experts believe it could fall to $1.76, but could also rise to $5.05 by the end of the year, especially due to Ripple’s new USD stablecoin (RLUSD).
Future expectations
New SEC chairman Paul Atkins has said that he will no longer impose stringent and sudden regulations on crypto. He wants to make clear and stable rules, which is in line with Ripple’s demand.
People’s opinion and the way forward
People are giving different opinions on social media (X) – some people are happy with Ripple’s victory, while some are angry with the case being dragged on. Experts believe that XRP getting the status of “regular crypto” can increase institutional investment.
Although the court has rejected the settlement, the SEC and Ripple are preparing to bring a new proposal again. The date is not fixed. Meanwhile, Ripple is expanding its work around the world, and Dubai has recognized RLUSD as a valid token.
Conclusion
The case is not over yet. The court has rejected the $50 million settlement, but Ripple has already received several legal reliefs. This case is still considered very important for the future of crypto regulations in the US.
Sources: CoinDesk, Reuters, Cointelegraph
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