After more than four years of legal wrangling, Ripple's lawsuit with the U.S. Securities and Exchange Commission (SEC) has finally come to a close. This legal dispute, which began in December 2020, stemmed from the SEC's accusations that Ripple illegally raised over $1.3 billion through the sale of XRP, while Ripple maintains that XRP is not classified as a security.

In this protracted litigation, the court ruling in July 2023 became a turning point. The court found that XRP itself does not constitute a security, but Ripple's direct sales to institutional investors did indeed violate securities laws, resulting in a civil penalty of $125 million. This ruling sparked a strong reaction in the cryptocurrency market, causing the price of XRP to rise by 10% in the short term.

Despite the SEC's multiple attempts to appeal, they were unsuccessful. Ultimately, in March 2025, the SEC announced it was abandoning the appeal, marking the official end of this four-and-a-half-year legal tug-of-war.

The outcome of this lawsuit has far-reaching implications for the entire cryptocurrency industry. It not only removes development obstacles for Ripple but also provides a new reference standard for the legal positioning of cryptocurrencies, indicating that the legal nature of crypto assets should be closely related to their actual use and sales scenarios, rather than being generalized.

For Ripple, although fined $125 million, this can be seen as a strategic victory in the long run, paving the way for the company's future development. More importantly, the end of this lawsuit clears the way for XRP to enter the ETF market. If the XRP ETF is approved, it is likely to attract a large amount of institutional funds, bringing new growth momentum to XRP and further enhancing its market value.

The resilience displayed by Ripple in this prolonged battle is impressive. With the resolution of legal disputes, Ripple can now fully focus on technological innovation and market expansion. We have reason to believe that, with its technological advantages in the field of cross-border payments and its established market foundation, Ripple is expected to occupy a more significant position in the global fintech arena, opening new chapters for the application and development of digital assets.