- 1. Is the Ripple Lawsuit Over? Status in November 2026
- 2. Ripple Lawsuit Timeline: Every Key Date From 2020 to 2026
- 3. Judge Torres Rejects the $50 Million Settlement (May and June 2025)
- 4. SEC Drops Appeal, Ripple Withdraws Cross-Appeal
- 5. Is XRP a Security? What the July 2023 Ruling Decided
- 6. Crypto Industry Reacts to Ripple Lawsuit Resolution
- 7. Frequently Asked Questions
- 8. Conclusion: A New Chapter for Crypto Regulation
Last Updated: November 4, 2026
The Ripple lawsuit is over. On August 7, 2025, the US Securities and Exchange Commission (SEC) and Ripple filed a joint stipulation dismissing the SEC’s appeal and Ripple’s cross-appeal at the Second Circuit, which ended the case the SEC filed in December 2020. The August 2024 final judgment stays in place: Ripple owes a $125,035,150 civil penalty and remains under an injunction covering registration rules for its XRP sales.
The settlement that would have cut the penalty to $50 million never took effect, because Judge Analisa Torres rejected it twice, on May 15 and June 26, 2025. This page was first published in May 2025, when the settlement was still pending. It now carries Blockchainreporter’s full, dated Ripple lawsuit timeline from 2020 to November 2026, the settlement rulings, what the 2023 decision means for XRP, and what has changed since the case ended in 2025.
Is the Ripple Lawsuit Over? Status in November 2026
Yes. The civil enforcement case SEC v. Ripple Labs, Inc., Bradley Garlinghouse, and Christian A. Larsen (Case No. 1:20-cv-10832, Southern District of New York) ended in August 2025. In its Litigation Release No. 26369 of August 7, 2025, the SEC said the joint stipulation dismisses both appeals and resolves its civil enforcement action, and that “that final judgment will remain in effect.” The Second Circuit’s approval of the dismissal was reported on August 22, 2025.
| Question | Answer (as of November 4, 2026) |
|---|---|
| Is the case still open? | No. Both appeals were dismissed in August 2025 |
| Final penalty | $125,035,150 civil penalty, set by the court on August 7, 2024 |
| Was the penalty reduced to $50 million? | No. Judge Torres refused to approve the reduction in May and June 2025 |
| Injunction | Still in force: Ripple is barred from violating Securities Act registration rules in XRP sales |
| Disgorgement | None. The court rejected the SEC’s disgorgement request in August 2024 |
| Claims against Garlinghouse and Larsen | Dropped by the SEC in October 2023 |
| Core ruling | July 13, 2023: institutional XRP sales were investment contracts; programmatic exchange sales were not |
| Where the $125 million went | It was held in escrow during the appeals and goes to the US Treasury after the dismissal, as reported by Decrypt on August 7, 2025 |
The full text of the SEC’s release is on sec.gov.
Ripple Lawsuit Timeline: Every Key Date From 2020 to 2026
Blockchainreporter’s timeline below lists each step of the Ripple vs SEC case with its date and source, followed by the main regulatory events for XRP after the case closed.
| Date | What happened | Source |
|---|---|---|
| December 22, 2020 | The SEC sues Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen, alleging a $1.3 billion unregistered securities offering through XRP sales since 2013 | SEC press release 2020-338 |
| July 13, 2023 | Judge Analisa Torres rules that Ripple’s institutional sales of about $728 million were investment contracts, while programmatic exchange sales of about $757 million and other distributions were not | Court ruling, as summarized by Cooley |
| October 2023 | The SEC drops its claims against Garlinghouse and Larsen | Decrypt |
| August 7, 2024 | Final judgment: $125,035,150 civil penalty and an injunction; disgorgement denied. The SEC had sought about $2 billion | SEC Litigation Release 26369; Manatt client alert |
| October 2, 2024 | The SEC files its notice of appeal to the Second Circuit; Ripple files a cross-appeal (Appeal Nos. 24-2648 and 24-2705) | Bloomberg Law; SEC Litigation Release 26369 |
| March 19, 2025 | Garlinghouse announces that the SEC will drop its appeal | The Block |
| March 25, 2025 | Ripple says it will drop its cross-appeal; the proposed deal lets the SEC keep $50 million and return $75 million, subject to a Commission vote and the court | The Block |
| May 8, 2025 | The SEC and Ripple ask the court for an indicative ruling to cut the penalty and lift the injunction; Commissioner Caroline Crenshaw dissents | SEC statement by Commissioner Crenshaw |
| May 15, 2025 | Judge Torres denies the request as “procedurally improper” | The Block |
| Mid-June 2025 | The parties file a renewed joint motion to release the escrowed funds and dissolve the injunction | CoinDesk, June 13, 2025 |
| June 26, 2025 | Judge Torres denies the renewed motion | The Block |
| June 27, 2025 | Garlinghouse says Ripple is dropping its cross-appeal | The Block |
| August 7, 2025 | The SEC and Ripple file a joint stipulation dismissing both appeals; the final judgment remains in effect | SEC Litigation Release 26369 |
| August 22, 2025 | The Second Circuit’s approval of the dismissal is reported | CoinGape, citing defense lawyer James Filan |
| November 13, 2025 | The first US spot XRP ETF, Canary’s XRPC, begins trading | SoSoValue and issuer data |
| March 17, 2026 | An SEC interpretation, joined by the CFTC, names XRP among examples of digital commodities | SEC press release 2026-30 |
| September 15, 2026 | The CLARITY Act market structure bill fails a Senate cloture vote, 49 to 50 | US Senate roll call vote 234 |
| October 26, 2026 | Ripple says it received final OCC approval for Ripple National Trust Bank | Ripple |
Judge Torres Rejects the $50 Million Settlement (May and June 2025)
The settlement the SEC and Ripple agreed in spring 2025 needed the court’s help, because the final judgment had already been entered and both appeals were pending. On May 8, 2025, the parties asked Judge Torres for an indicative ruling, a signal that she would dissolve the injunction and cut the $125 million penalty to $50 million if the Second Circuit returned the case to her.
On May 15, 2025, Judge Torres said she would deny the request as “procedurally improper.” She wrote that the parties had not addressed the “heavy burden” needed to vacate an injunction, and that relief from a final judgment under Rule 60 of the Federal Rules of Civil Procedure requires “exceptional circumstances.” The parties filed a renewed motion in mid-June 2025.
On June 26, 2025, Judge Torres denied it again. “None of this has changed,” she wrote, adding that “the parties hardly pretend that it has,” as reported by The Block. She said the SEC can change its enforcement priorities, but the parties cannot set aside a final judgment on their own. That left the SEC and Ripple two options: keep litigating the appeals or drop them and accept the original judgment. They chose to drop them.
SEC Drops Appeal, Ripple Withdraws Cross-Appeal
The appeal phase began on October 2, 2024, when the SEC filed its notice of appeal to the Second Circuit. Ripple then cross-appealed the finding on institutional sales. After the change of administration in January 2025, the SEC’s approach to crypto cases shifted.
- March 19, 2025: Ripple CEO Brad Garlinghouse announced that the SEC would drop its appeal.
- March 25, 2025: Ripple Chief Legal Officer Stuart Alderoty said Ripple would not pursue its cross-appeal. Under the proposed deal, the SEC would keep $50 million of the $125 million held in an interest-bearing escrow account and return $75 million to Ripple, and the SEC would ask the court to lift the injunction. Alderoty said the deal still needed a Commission vote, final documents and court approval. CNBC also reported the $50 million and $75 million split at the time.
- May and June 2025: Judge Torres refused to approve the changes, as described above.
- June 27, 2025: Garlinghouse said Ripple was dropping its cross-appeal and was “closing this chapter once and for all.”
- August 7, 2025: The SEC filed the joint stipulation dismissing both appeals, with each side bearing its own costs, according to Decrypt.
Because the reduction was never approved, the final outcome is the original August 2024 judgment, not the $50 million settlement many reports described in March 2025.
Is XRP a Security? What the July 2023 Ruling Decided
The case’s main legal result is the July 13, 2023 ruling by Judge Torres, which applied the Howey test to different kinds of XRP sales. It did not declare XRP itself a security or a non-security in every context.
| Type of XRP sale | Amount (per the ruling) | Investment contract? | Why |
|---|---|---|---|
| Institutional sales to buyers under written contracts | About $728 million | Yes | Buyers invested money expecting profits from Ripple’s efforts |
| Programmatic sales on exchanges | About $757 million | No | Blind bid and ask trades: buyers did not know they were buying from Ripple |
| Other distributions (XRP paid to service providers instead of cash) | About $609 million | No | No investment of money by the recipients |
| Sales by Larsen and Garlinghouse | About $600 million combined | No | Treated like programmatic sales |
Because the appeals were dropped, the ruling was never reviewed by the Second Circuit. It stands as a district court decision, not a binding appellate precedent. Ripple’s institutional sales remain under the injunction, which, according to the August 2024 judgment, bars Ripple from future XRP sales that violate the Securities Act’s registration rules.
The regulators’ own view has moved since 2025. On March 17, 2026, the SEC issued an interpretation, joined by the CFTC, that sorts crypto assets into five categories and names XRP, alongside bitcoin, ether and Solana, among examples of digital commodities. An interpretation is agency guidance, not a law or a court ruling, and a future SEC could revise it. Congress has not passed a market structure law: the CLARITY Act stalled after a 49 to 50 Senate cloture vote on September 15, 2026.
Crypto Industry Reacts to Ripple Lawsuit Resolution
XRP rose more than 10% in the 24 hours around the August 7, 2025 filing, to about $3.31, according to CoinGecko data cited by Decrypt. Many in the industry read the end of the case as part of a broader SEC retreat from crypto enforcement in 2025, when the agency also dropped its case against Coinbase.
Not everyone at the SEC agreed. In a statement on May 8, 2025, Commissioner Caroline Crenshaw dissented from the proposed settlement, saying it “does a tremendous disservice to the investing public” because it would undo the court’s injunction and most of the penalty. Judge Torres’s two refusals meant the injunction and the full penalty survived anyway.
What Changed for XRP Since the Case Ended in 2025
- XRP ETFs: The first US spot XRP ETF, Canary’s XRPC, began trading on November 13, 2025. See the XRP ETF guide for the current tickers.
- Regulatory status: The SEC’s March 17, 2026 interpretation, joined by the CFTC, lists XRP among digital commodity examples.
- Banking: Ripple says the Office of the Comptroller of the Currency gave final approval on October 26, 2026 for Ripple National Trust Bank, after a conditional approval in December 2025 (company statement).
- Price: XRP traded at about $1.28 on CoinMarketCap at 10:16 UTC on November 4, 2026, with a market value of about $81.3 billion (rank 5). That is about 61% below the $3.31 level of August 7, 2025, and 15.3% lower over 30 days. Follow the live XRP price and XRP news today.
The legal case no longer drives XRP’s price. Broader market conditions, ETF flows and US legislation now matter more. On November 4, 2026, the crypto Fear and Greed Index read 34 (Fear), less than a week after the October 29 Binance hack.
Frequently Asked Questions
What is the outcome of the Ripple vs SEC lawsuit?
The case ended in August 2025 when the SEC and Ripple dismissed their appeals. The August 2024 final judgment stands: Ripple owes a $125,035,150 civil penalty and remains under an injunction on registration rules for XRP sales. The court found institutional XRP sales were investment contracts, while programmatic exchange sales were not. The proposed $50 million settlement was rejected by the judge.
Is the Ripple lawsuit over?
Yes. On August 7, 2025, the SEC and Ripple filed a joint stipulation dismissing the SEC’s appeal and Ripple’s cross-appeal at the Second Circuit, and the SEC said this resolves its civil enforcement action. The court’s approval of the dismissal was reported on August 22, 2025. No part of the case is still pending as of November 2026.
When did the Ripple lawsuit officially end?
The Ripple lawsuit officially ended in August 2025. The joint stipulation dismissing both appeals was filed on August 7, 2025, and the Second Circuit’s approval was reported on August 22, 2025. Earlier reports of a five-year compliance period or a 30-day $50 million payment described a proposed settlement that the court never approved, so they do not describe the final result.
Did Ripple pay $50 million or $125 million?
The final penalty is $125,035,150. In March 2025 the SEC and Ripple agreed that the SEC would keep $50 million and return $75 million, but Judge Analisa Torres refused to approve the change in May and June 2025. The funds had been held in escrow during the appeals and, according to Decrypt, go to the US Treasury after the dismissal.
Why did Judge Torres reject the Ripple settlement?
Judge Torres said the parties could not undo a final judgment just because they agreed to. Relief under Rule 60 requires exceptional circumstances, and she found none. Her May 15, 2025 order called the request procedurally improper, and her June 26, 2025 order said nothing had changed. She noted the SEC can change its priorities, but the court’s judgment still applies.
What does the outcome mean for XRP and crypto regulation?
The outcome leaves a district court ruling, not an appellate precedent, that separates sales to institutions from blind sales on exchanges. Since 2025, an SEC interpretation joined by the CFTC has named XRP among examples of digital commodities, but Congress has not yet passed a crypto market structure law.
Is XRP a security after the Ripple case?
The 2023 ruling did not label XRP itself a security. It found that Ripple’s institutional sales were investment contracts, while programmatic exchange sales and other distributions were not. On March 17, 2026, an SEC interpretation joined by the CFTC named XRP among examples of digital commodities. That is agency guidance, not a statute, so a future SEC could change it.
Can Ripple still sell XRP to institutional investors?
Ripple can sell XRP, but the injunction from the August 2024 judgment still applies. It bars Ripple from future XRP sales that violate the Securities Act’s registration rules, so sales structured like the institutional contracts in the case would need registration or an exemption. The court declined the SEC’s request for a blanket ban on institutional sales.
How did XRP react when the Ripple case ended?
XRP rose more than 10% in the 24 hours around the August 7, 2025 filing, to about $3.31, according to CoinGecko data cited by Decrypt. The gain did not last. On November 4, 2026, XRP traded at about $1.28 on CoinMarketCap, roughly 61% below that level, as wider market conditions and ETF flows drove prices.
What has changed for Ripple and XRP since 2025?
Since the case ended in 2025, US spot XRP ETFs began trading in November 2025, an SEC interpretation joined by the CFTC named XRP among digital commodity examples in March 2026, and Ripple says it received final OCC approval for a national trust bank on October 26, 2026. The CLARITY Act stalled in the Senate in September 2026.
Conclusion: A New Chapter for Crypto Regulation
SEC v. Ripple ran from December 2020 to August 2025 and ended without the settlement both sides wanted. The full $125 million penalty and the injunction stand, but so does the July 2023 finding that Ripple’s programmatic exchange sales were not investment contracts. For XRP holders, the court case is history. The questions that matter in late 2026 are regulatory and market ones: how the SEC’s 2026 interpretation holds up, whether Congress passes a market structure law, and how ETF demand develops. For context on where XRP stands today, see Is XRP Dead? and the attributed forecasts in our XRP price prediction.
Data sources: SEC Litigation Release 26369 and press releases 2020-338 and 2026-30, SEC statement by Commissioner Crenshaw (May 8, 2025), court rulings of July 13, 2023 and August 7, 2024 as summarized by Cooley and Manatt, The Block, Decrypt, CoinDesk, Bloomberg Law, CoinGape, Ripple, CoinMarketCap and alternative.me, checked November 4, 2026.
This article is for informational purposes only and is not legal or investment advice.
