The long-running SEC vs. Ripple lawsuit has officially concluded. On August 8, 2025, the U.S. Securities and Exchange Commission (SEC) ended its enforcement action against Ripple Labs, upholding a $125 million civil penalty.
The resolution confirms that secondary-market sales of XRP on exchanges do not qualify as securities offerings, while enjoining future institutional sales that violate securities laws. This brings much-needed legal clarity to XRP, removing a major overhang that has weighed on the token since the case began in 2020. The SEC’s litigation release provides further official insights.
In parallel regulatory moves, the SEC has designated extended review periods for two spot XRP exchange-traded product (ETP) proposals filed with Cboe BZX Exchange:
- The Canary XRP Trust, with a decision deadline now set for October 23, 2025. Read the full Federal Register notice here.
- The WisdomTree XRP Fund, slated for a decision by October 24, 2025. Details are available in the Federal Register here.
These delays extend the standard 240-day review window, allowing more time for the SEC to evaluate potential investor risks and market manipulation concerns in crypto ETPs.
Adding to the momentum for crypto products, NYSE Arca filed a proposal on August 4, 2025, to establish generic listing standards for commodity-based trust shares, including those backed by cryptocurrencies like XRP.
If approved, this could streamline future ETP listings by bypassing individual rule filings, potentially accelerating approvals for qualifying products. The filing is detailed in the Federal Register. This move aligns with growing institutional interest in crypto ETPs, following the success of Bitcoin and Ethereum spot ETFs.
Price Action
XRP is trading softer on August 29, 2025, down about 4.35% over the past 24 hours, amid stalling momentum at the $3.00 psychological level. The token hit a daily low near $2.85, where bids have clustered for support, while the high touched $3.02.
Broader crypto market weakness, including dips in Bitcoin and Ethereum, is contributing to the pullback. A decisive break above $3.00 could target the $3.30 area, a former supply zone from July. Conversely, losing $2.85 might expose lower supports in the high $2.80s.
Technical indicators show XRP in a tight range, with the Relative Strength Index (RSI) hovering around neutral levels, signaling indecision. Volume remains elevated at $6.91 billion, indicating active trading despite the dip. XRP’s market cap stands at approximately $170.93 billion, securing its #3 rank behind Bitcoin and Ethereum.
Why It Matters
The Ripple SEC case closure provides regulatory certainty, affirming that XRP secondary trading isn’t a security—a win for exchanges and retail investors. However, restrictions on institutional sales maintain some guardrails, preventing unrestricted primary distributions. This framework could boost adoption in payments and cross-border transfers, Ripple’s core use cases.
On the ETF front, the October 23–24 deadlines mark a critical window for XRP ETP approvals. Positive outcomes might attract billions in institutional inflows, similar to Bitcoin ETFs. The NYSE Arca generic listing proposal could further ease barriers for future crypto ETPs, fostering innovation in the sector. Yet, SEC caution on investor protection and market integrity remains a hurdle.
Overall, these developments position XRP for potential upside if catalysts align, though near-term volatility persists amid global economic uncertainties.
