After nearly five years of courtroom battles, the Ripple vs SEC lawsuit is entering what could be its final phase.
Earlier this month, both sides moved to dismiss their appeals, signaling the effective end of a dispute that began in 2020 when the SEC accused Ripple Labs of raising $1.2 billion through unregistered XRP sales.
The dismissal meant Ripple avoided the multibillion-dollar penalties once floated by regulators, instead agreeing to a $125 million fine. Importantly, courts affirmed that XRP itself is not a security — though restrictions remain in place for future institutional sales.
Yet despite the joint withdrawal of appeals, the case isn’t fully wrapped up. The SEC has now filed a formal status report with the U.S. Second Circuit, fulfilling a directive to update the court on the matter. Once the court signs off, the lawsuit will be formally closed.
Observers say the delay is more procedural than substantive. Former prosecutors and legal analysts note that Ripple has already secured the outcome it sought, with the token cleared of security status.
Community voices argue the report was only necessary because the appellate court has not yet approved the dismissal agreement.
The eventual closure will be viewed as a landmark for U.S. crypto regulation, marking one of the first major instances where the SEC’s sweeping definition of securities faced a decisive judicial limit.
For Ripple, it also clears a path to conduct business under more predictable rules, even as the debate over how digital assets should be regulated continues in Washington.
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Source: https://coindoo.com/new-development-in-the-ripple-vs-sec-case/