Ripple, XRP Won: SEC Lawsuit Filed This Date 5 Years Ago

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News The XRP community is doing a victory dance this December as the Ripple lawsuit filed by the SEC about five years ago totally becomes a thing of history. Advertisement On Dec. 22, 2020, the Securities and Exchange Commission (SEC) filed a high-profile enforcement action against Ripple, alleging that it broke securities laws by selling XRP without registering it as a security. This December marks five years since the SEC lawsuit against @Ripple began. Back then, many in the crypto community laughed and didn’t expect it would lead to real legal clarity for #XRP . But here we are, half a decade later, witnessing how that challenge helped shape a more… pic.twitter.com/bIpXrBP0qU — X-Art ☀️ (@Dogeh8er) December 5, 2025 The case evolved into one of the most-watched legal cases in crypto as it rallied the greater crypto industry around XRP. More than a dozen advocacy groups, including the Chamber of Digital Commerce and the Blockchain Association, wrote to U.S. District Judge Analisa Torres in support of Ripple’s position. Advertisement Ripple, XRP won The SEC had contended XRP was a security under the so-called Howey test, named after a 1946 Supreme Court ruling. Ripple contended that XRP did not meet that test because sales took place in the secondary market and there was no pooling of profits. HOT Stories Crypto Market Prediction: XRP's Last Chance Before $1, Another Bitcoin (BTC) Wave to Set $100,000 in Stone, Shiba Inu (SHIB) Comeback to the Bottom is Possible Ethereum’s Buterin Advocates for Stronger Crypto XRP Hits Astonishing 1,694,200% Liquidation Imbalance, Vitalik Buterin Breaks Silence on Ethereum Outage, $185 Million in Bitcoin Exits Binance in Minutes – Crypto News Digest Morning Crypto Report: Elon Musk's SpaceX Relocates $100 Million in Bitcoin, USD Stablecoin $1 Million Exploit, New Cloudflare Outage Takes Down Coinbase In July 2023, Judge Torres ruled that XRP was not a security in and of itself but found certain institutional sales to have violated securities law; the decision was widely viewed by the industry as a victory and a check on the SEC’s authority. The SEC asked Judge Torres to order Ripple to pay more than $876 million in disgorgement and more than $198 million in interest, along with an $876 million civil penalty. In a win for Ripple , Judge Torres denied the SEC’s bid for Ripple to disgorge profits from its sales on the basis that the case "does not involve allegations of fraud, misappropriation or other more culpable conduct." Ripple was asked to pay $125 million in civil penalties. Fast forward to October this year, in a move that put a final closure to the case, both parties dismissed their appeals in the U.S. Court of Appeals for the Second Circuit. The stipulation also resolved the civil enforcement actions against Ripple CEO Brad Garlinghouse and its chairman Chris Larsen. This effectively ended one of the cryptocurrency industry's highest-profile lawsuits. At the time of writing, XRP was trading at $2.04, up 827% from the $0.22 low reached in December 2020 when the SEC lawsuit was filed. #Ripple News #XRP