XRP SEC Lawsuit: Full Timeline and Current Status

On December 22, 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs and two of its executives — CEO Brad Garlinghouse and co-founder Chris Larsen — alleging they conducted an unregistered securities offering by selling XRP tokens and raising over $1.3 billion.

2023 Landmark Ruling

In July 2023, U.S. District Judge Analisa Torres issued a partial summary judgment ruling that XRP sold on public exchanges to retail investors did NOT constitute a securities offering. However, direct institutional sales of XRP by Ripple were found to be securities transactions. This nuanced ruling was widely seen as a partial win for Ripple and the broader crypto industry.

2025-2026 Regulatory Clarity

In 2025, an SEC veteran clarified the retail XRP trading status following the Ripple proceedings. A new SEC-CFTC coordination pact signed in early 2026 further refined the regulatory framework for digital assets, providing greater clarity on how XRP would be treated under U.S. law.

Impact on XRP Price

The legal proceedings had a profound impact on XRP's price and availability. In early 2021, the SEC lawsuit caused major US exchanges including Coinbase and Binance.US to temporarily delist or suspend XRP trading, causing the price to plunge. Following the 2023 partial court victory, XRP was relisted on these platforms and regained significant market ground. As of March 2026, XRP's status as a non-security for retail trading purposes has been largely established, contributing to the approval of spot XRP ETFs.