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What was the SEC case against Ripple?
In December 2020 the SEC sued Ripple Labs and two of its executives, alleging that sales of XRP were an unregistered securities offering. In 2023 a federal court ruled that Ripple's sales to institutions were unregistered securities sales but its other sales of XRP were not. The case ended in August 2025 with a $125 million penalty against Ripple standing.
What it means for you
The ruling turned on how and to whom XRP was sold, not on the token alone. A court's reading of one company's sales does not settle the legal status of every token, or of XRP everywhere.
How it works
The SEC alleged on December 22, 2020 that Ripple raised over $1.3 billion from 2013 through an unregistered, ongoing digital asset securities offering, and distributed billions of XRP for labour and market-making. On July 13, 2023 the district court found Ripple's institutional sales were an unregistered offer and sale of investment contracts, and that other secondary sales were not. The final judgment of August 7, 2024 imposed a $125,035,150 civil penalty and an injunction against further registration violations. On August 7, 2025 the SEC and Ripple dismissed their cross-appeals, ending the case with that judgment in effect.
Sources: SEC: charges against Ripple and two executives (2020-338), SEC: Litigation Release No. 26369 (August 7, 2025), SEC: Statement of Commissioner Crenshaw on the Ripple settlement (May 8, 2025) · checked 5 October 2026
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