The U.S. Securities and Exchange Commission (SEC) is now focusing on creating clear rules for cryptocurrencies after ending a nearly five-year lawsuit with Ripple Labs.
The SEC initiated the case against Ripple in the year 2020. The SEC had asserted that Ripple illegally raised $1.3 billion by selling XRP without proper registration. However, on August 7, 2025, both the SEC and Ripple agreed to drop their appeals in a U.S. court, ending the case.
Hester Peirce, SEC Commissioner, stated in her X post that “Last week, the SEC’s case against Ripple was finally laid to rest. A welcome development for many reasons, including that minds once occupied with litigation now can concentrate on creating a clear regulatory framework for crypto.”
SEC Chair Paul Atkins also stated in his X post that, “With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table.” He further added that “Our focus should be on building a clear regulatory framework that fosters innovation while protecting investors.”
Ripple was fined $125 million
In 2023, a judge ruled in favour of XRP that XRP sold to retailers is not considered a security, while sales to institutional investors will be considered as securities. Ripple was fined $125 million in August 2024 following the ruling.
This development comes as lawmakers push the CLARITY Act, a bill to set rules for digital assets, aiming for passage by September 30, 2025. Republicans support it, but Democrats, led by Maxine Waters, oppose it and another bill against a U.S. digital currency, calling them risky.
This trend indicates growing political disagreements. The Ripple case’s end reduces uncertainty for everyday crypto trades and sparks hope for better U.S. crypto regulations to stay competitive globally.
Also Read: XRP Lawyer Dismisses 2026 Delay Rumors in Ripple vs SEC Case
