The Securities and Exchange Commission (SEC) and Ripple Labs are set to end their years-long legal battle when both parties asked the Court of Appeals to dismiss the case.
On Thursday, the Second Circuit Court of Appeals upheld the joint dismissal of the SEC’s appeal and Ripple’s counter-appeal regarding the XRP lawsuit, stating that each party will bear its own costs and attorneys’ fees.
Ripple’s Chief Legal Officer Stuart Alderoty confirmed on X-site that both parties had withdrawn their appeals.
In 2020, the SEC sued Ripple, accusing the company of selling its XRP tokens as unregistered securities.
However, the issue resurfaced in 2023 when Federal Judge Analisa Torres issued a mixed ruling that the tokens were still considered securities.
As the case remained pending, the ruling held that the XRP Ripple sold on public exchanges did not meet the definition of a security, but that the tokens sold to institutional investors were classified as unregistered securities.
The settlement has been a major catalyst for XRP’s price rally in recent months, with a nearly 99% surge from a 2025 low of $1.79 on April 9 to a high of $3.56 on July 22.
Although XRP’s price briefly dipped below $3, it has rebounded 10.6% in the past 24 hours to $3.31.
