Significant progress has been made in the regulation of the US securities market. Recently, the SEC reached a consensus with the blockchain company Ripple Labs, and both parties submitted a joint motion to withdraw their case to the US Court of Appeals for the Second Circuit on August 7, 2025, marking the formal conclusion of this highly followed legal dispute.

According to the agreement, the SEC and Ripple will each bear the costs incurred during the litigation process and terminate the appeal procedure. This decision makes the ruling made by District Court Judge Analisa Torres in July 2023 a final judgment. This ruling has a profound impact on the cryptocurrency industry, clarifying that the trading of XRP in the secondary market does not constitute a securities offering, providing important references for the compliant trading of digital assets.

However, it is worth noting that the court simultaneously ruled that Ripple's sale of XRP to institutional investors constitutes an illegal securities offering. This ruling reflects the challenges that regulators face in balancing innovation with investor protection, and it establishes new compliance standards for transactions between cryptocurrency companies and institutional investors.

This years-long legal battle ultimately ended with both parties making concessions, providing legal protection for XRP's market position and bringing new considerations to the regulatory framework of the entire cryptocurrency industry. With the establishment of this landmark ruling, the industry hopes to build a clearer and more reasonable regulatory system for digital assets, promoting healthy development in the sector.