Ripple vs. SEC: A 4-Year Legal Battle Concludes – Key Moments, Timeline & Final Ruling
Highlights
- The Ripple vs. SEC lawsuit has officially concluded, with XRP declared “not a security”.
- Ripple will pay a $125 million penalty but avoided more severe sanctions.
- This landmark case is seen as reshaping the legal landscape for digital assets in the United States.
The Ripple vs. SEC lawsuit stands out as one of the most significant and closely watched legal battles in the history of the cryptocurrency industry. Over the course of four years, it drew intense attention from investors, regulators, and crypto service providers alike. What began as a courtroom showdown quickly evolved into a wider debate over Ripple’s operations and the broader credibility of the crypto market. While the case brought considerable challenges and uncertainty, much of that is now behind us.
So, what exactly was the Ripple vs. SEC lawsuit?
At its core, the case involved a legal dispute between Ripple, a major blockchain-based technology company, and the U.S. Securities and Exchange Commission (SEC). The SEC alleged that Ripple had conducted an unregistered securities offering by selling its XRP token. This legal battle not only tested Ripple’s business model but also played a major role in shaping how digital assets are classified under U.S. law.
Throughout the case, XRP’s price experienced sharp fluctuations — at one point dropping to around $0.50. However, as the lawsuit concludes with XRP declared “not a security,” the token has rebounded significantly, now trading at $3.33.
The Ripple vs. SEC lawsuit became a landmark case in the cryptocurrency world, central to the debate over whether digital assets should be classified as securities or commodities. At the heart of the case, the U.S. Securities and Exchange Commission (SEC) argued that XRP was a security, while Ripple firmly maintained that it was not.
This case carried enormous significance, as it was the SEC’s first major legal action against one of the top cryptocurrencies by market capitalization. Its outcome was expected to influence future crypto regulations and shape the legal treatment of digital assets in the United States.
Key Timelines, Turning Points, and the Final Verdict in the Ripple vs. SEC Lawsuit:
December 2020 – The Lawsuit Begins
The legal battle began on December 22, 2020, when the SEC filed a lawsuit against Ripple Labs, alleging that the company’s sale of XRP tokens constituted an unregistered securities offering. The lawsuit also named Ripple CEO Brad Garlinghouse and co-founder Chris Larsen as defendants. What started as a regulatory enforcement case quickly escalated into a broader debate that affected the entire crypto industry.
2021 – Ripple Pushes Back
Ripple responded in 2021 by filing a motion to dismiss the case, making it clear they intended to challenge the SEC’s claims aggressively. The legal battle gained national attention, drawing in industry leaders and crypto enthusiasts who closely followed each development. In early 2022, a court initially sided with the SEC, ruling that certain XRP sales could be considered securities transactions. However, in April of the same year, Judge Analisa Torres ruled that XRP did not qualify as a security in secondary market sales.
2023 – The Discovery Phase
Throughout 2023, both sides engaged in a lengthy discovery process. Ripple argued that XRP functioned as a currency and highlighted inconsistencies in the SEC’s approach to regulating digital assets. Internal SEC emails were brought into evidence, suggesting a lack of clear guidance and contradictory stances on crypto classifications. This phase was critical in weakening the SEC’s arguments and strengthening Ripple’s position.
Late 2024 – The Trial Begins
The official trial commenced in late 2024, with witness testimonies and expert analysis forming the backbone of the proceedings. As the case approached its conclusion, Ripple was ordered to pay a $125 million penalty for violations related to institutional XRP sales. However, the court rejected the SEC’s request for full disgorgement of Ripple’s profits, limiting the financial penalties significantly.
March 2025 – SEC Drops Appeal
In a surprising turn, the SEC dropped its planned appeal in March 2025. On March 8, both Ripple and the SEC agreed to end the case, with Ripple settling for a reduced penalty of $50 million. This marked a major win for Ripple and a critical moment for the broader crypto industry.
August 2025 – Case Officially Ends
On August 7, 2025, the lawsuit was officially closed, as confirmed by Ripple’s Chief Legal Officer. Judge Analisa Torres’ final ruling upheld the earlier decision that XRP is not a security, ending the four-year-long legal saga and setting a powerful precedent for future cases involving digital assets.
