On August 22, the Second Circuit Court of Appeals in the United States approved the agreement between the Securities and Exchange Commission (SEC) and Ripple Labs to end the legal battle that began in 2020.
#XRPCommunity #SECGov v. #Ripple #XRP The Second Circuit has approved the Joint Stipulation of Dismissal. pic.twitter.com/v796dAtfiZ
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 22, 2025
Earlier this month, the parties submitted a joint appeal, withdrawing further challenges to the decisions made.
The SEC filed a lawsuit against Ripple in December 2020, accusing the company of unregistered securities sales in the form of XRP tokens.
In July 2023, Judge Analisa Torres ruled that XRP trading on exchanges does not violate the law. However, offering the crypto asset to institutional investors breached securities law.
Ripple was fined $125 million, while the regulator demanded $2 billion. In October 2024, the SEC filed an appeal, and the company filed a counter-appeal.
Following Donald Trump’s re-election as US President and a change in the Commission’s leadership, the parties agreed to end the dispute. In June this year, Ripple and the SEC requested the court to lift the fine and the ban on offering XRP to large players, but Torres rejected the request.
The 2023 ruling by the judge is now final and cannot be appealed. XRP traded on exchanges is not a security. Direct sales to institutions will require SEC registration.
Is the Launch of Spot XRP-ETFs Closer?
Simultaneously with the final settlement of Ripple’s token status, asset managers Grayscale, Bitwise, Canary, CoinShares, Franklin, 21Shares, and WisdomTree updated their applications with the SEC to launch spot ETFs based on XRP.
Bunch of XRP ETF filings being updated by issuers today. Almost certainly due to feedback from SEC. Good sign, but also mostly expected pic.twitter.com/GiSL1kc6lt
— James Seyffart (@JSeyff) August 22, 2025
“A good sign, but mostly expected,” noted Bloomberg exchange analyst James Seyffart.
In his view, this is likely related to the regulator’s feedback on product proposals.
His perspective was supported by NovaDius Wealth President Nate Geraci, who called the collective change in requests noteworthy.
On the Polymarket prediction platform, the odds of regulatory approval for exchange-traded XRP funds this year jumped to 84%.
In early June, the figure exceeded 98%, but then fell to ~65% by August. Despite such a low investor assessment, Bloomberg’s team of analysts remained confident in a 95% probability of XRP ETF registration. In their opinion, the SEC is likely to make a decision in October.
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%. https://t.co/TamMn8DHVh pic.twitter.com/Ip9G748HrU
— Eric Balchunas (@EricBalchunas) August 7, 2025
XRP prices have risen nearly 7% in the past day as part of a broader market rally triggered by Federal Reserve Chairman Jerome Powell’s speech. At a conference in Jackson Hole, the central bank head hinted at a readiness to lower the key rate in September.
The Ripple token remains above the $3 level.
Earlier, Bitget’s chief analyst Ryan Lee and IT consultant Roman Nekrasov in comments for ForkLog gave a bullish forecast for XRP in the coming months.