With Ripple Case Over, SEC Pivots to Building Clarity for Digital Assets
Optimism spread across the cryptocurrency sector after the U.S. Securities and Exchange Commission (SEC) ended its prolonged legal battle against Ripple Labs, chief executive Bradley Garlinghouse, and co-founder Chris Larsen. SEC Commissioner Hester Peirce expressed her view on social media platform X on Aug. 11:
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.
The SEC announced on Aug. 7, 2025, that it had filed a joint stipulation of dismissal with Ripple, ending both its appeal and Ripple’s cross-appeal before the U.S. Court of Appeals for the Second Circuit. The district court’s prior ruling—imposing a $125,035,150 civil penalty on Ripple and issuing an injunction to prevent further violations of the Securities Act of 1933—will remain in place. This action formally concludes a case that began in December 2020, when the SEC alleged that Ripple had engaged in unregistered securities offerings through sales of XRP.
In addition, the SEC granted Ripple a waiver for Regulation D, removing the “bad actor” designation tied to its lawsuit. This allows Ripple to more easily raise capital from accredited investors, signaling a potential shift in the regulatory landscape following their legal battle.
SEC Chair Paul Atkins echoed Commissioner Peirce’s remarks, stating:
Commissioner Peirce is right. With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table. Our focus should be on building a clear regulatory framework that fosters innovation while protecting investors.
The SEC recently launched “Project Crypto” to modernize regulations and enable America’s financial markets to move “on-chain.” This initiative aims to provide clear guidelines for classifying crypto assets and integrating tokenized securities into decentralized finance, signaling a shift from enforcement-only to a more comprehensive regulatory approach. Ripple’s chief legal officer Stuart Alderoty directed his thanks to Atkins: “Thank you for your leadership in moving America towards clear rules of the road for crypto, Chair Atkins.”