Ripple's five-year lawsuit has finally come to an end! Accepting a $125 million fine confirms that XRP is not a security, and the SEC will no longer appeal.

Ripple and the SEC have finally concluded their five-year lawsuit. The judge insisted on following the law, and Ripple accepted a $125 million fine along with a permanent injunction. The identification of XRP has been established, and the regulatory path for crypto in the United States is now clearer. (Background: The first "2x XRP leverage" fund in the U.S. was launched; analysts say that the approval of Ripple's spot ETF is just a matter of time.) (Additional background: Ripple has "solidly established" itself in the U.S.; the SEC lawsuit has concluded, and it has begun expanding its domestic business.) Starting from December 2020, a tweet on June 27, 2025, marks the conclusion of the lawsuit involving $30 billion in market capitalization between Ripple and the SEC. Ripple decided to withdraw its cross-appeal, and the SEC no longer contested it, thus solidifying the legal positioning of XRP in the U.S. The lawsuit came to a close when Judge Analisa Torres of the Southern District of New York rejected the joint motion by Ripple and the SEC to lift the injunction for the second time on the 26th (Taiwan time), stating in the ruling: Follow the law. Ripple CEO Brad Garlinghouse subsequently stated on X to "focus back on the business" and withdrew the cross-appeal. According to CoinDesk, the SEC also withdrew its appeal simultaneously. After the news was announced, XRP only rose slightly by 1.4%, and there were no unusual trading volumes, indicating alignment with investor expectations. Key points of the five-year legal battle include the SEC charging Ripple in 2020 for unregistered issuance of XRP, violating securities laws. In July 2023, the court ruled that XRP is not a security on the open market, but sales of XRP to institutions remain illegal, setting an important precedent for the crypto market. Between 2024 and 2025, both parties filed mutual appeals in an attempt to reduce the fine to $50 million while also seeking to lift the permanent injunction, both of which were twice rejected by the judge. Ultimately, Ripple accepted the original judgment: paying a $125 million civil fine and being permanently banned from directly issuing XRP to institutions. The next step for Ripple and regulators is the establishment of XRP's "non-security" status, which is seen as a significant milestone in U.S. crypto regulation. After the Trump administration takes office in January 2025, the SEC is expected to adopt a more lenient "settlement-style enforcement" toward crypto cases, making this case an important example. The legal boundaries are clearer, leading the market to think about the next step: the momentum for XRP ETF applications may be expected to heat up, potentially expanding channels for institutional investment. After the dust settled, Ripple redirected resources toward products, revealing that RippleNet has covered over 90 countries and will fully promote its "Internet of Value" vision. Although the permanent injunction restricts direct sales to institutions, the company can still repurchase or manage inventory through the secondary market. Investor confidence is recovering, and negotiations for enterprises to increase their holdings of XRP have begun to emerge. Whether the ETF will be approved and when institutional funds will enter the market will be key points for observation.