In the crypto scene, no doubt, XRP Lawsuit News is what a lot of people are out there searching for, and that’s because it quite literally was one of the biggest and landmark cases in the industry. But finally, it has come to a closure, but for those who are hearing about it for the very first time, don’t worry, we’ll explain things from the very beginning.
Why the XRP Lawsuit Became Such a Big Thing Lately
Actually, just recently, a lot of people were anticipating some quick response in the XRP lawsuit, and that is precisely what happened later on. And it quite literally became one of the biggest legal cases in the history of cryptocurrency, and it still is just that. And just to brief you on that, the main question that kinda became the center point of this lawsuit is whether XRP is considered a security under U.S. law or not?
As per the SEC, in this case so far, they clearly say that Ripple has been marketing this XRP thing as if it is a real investment product. And just so you know, no company can’t just do that, especially without a proper registration process first. But sure enough, as you must have expected it already, Ripple is saying exactly the opposite of that, in reality, they say that this XRP thing isn’t or should not be illegal because it is just a digital asset and nothing else. They’re not saying that it is a security at all. That’s just Ripple’s side of the story.
How It All Started (The SEC’s Move in 2020)
Just to brief you on the backstory of this case a little bit, like how it came this far, see, the SEC brought legal action against Ripple Labs and two of its executives on the 22nd of December 2020. From the very start, actually, the agency alleged that Ripple had carried out unregistered securities sales of approximately $1.3 billion worth of XRP.
Simply put, the SEC argued that XRP was not merely a digital currency. It was clear from the start that they were of the opinion that it was more like a stock offering.
Ripple Fights Back and the Role of the XRP Community
Sure enough, since it was a case about their main crypto currency, no doubt, Ripple decided not to settle like many other companies. Instead, they responded by saying that the SEC never provided a clear guidance that XRP could be a security.
All in all, yes, Ripple was saying: “You can’t expect us to obey rules that have not been clearly communicated to us.”
Meanwhile, the holders of XRP started to get involved very actively. Several of them sent in amicus briefs and indicated that the SEC had, in fact, treated some other digital assets differently and that right there was an interesting point.
The Turning Point in Court (2022-2023)
Actually, following long and persistent delays, the case started moving in a different direction. The next twist came when in 2022, the court compelled the SEC to disclose the internal documents concerning the Ethereum speech. And sure enough, if you’re into this entire crypto scene, you’d know how big of a thing it was and no doubt, this stirred up the case even more.
As a result, the judge in the middle of 2023 came up with a partly favorable decision for both sides. What? The verdict said that public exchange sales of XRP were not deemed securities, but on the other hand, direct sales to big investors were identified as securities transactions.
Though the thing is, following the ruling, the case did not come to an immediate close. The SEC decided to appeal certain elements of the decision, essentially prolonging the legal battle. At last, in August 2025, the two parties withdrew their appeals, marking the end of the case. So that’s pretty much it so far.
