The U.S. Securities and Exchange Commission (SEC) is now prioritizing the development of clear regulatory frameworks for cryptocurrency after concluding a lengthy legal battle with Ripple Labs. The SEC’s lawsuit against Ripple, initiated in 2020, centered on allegations that the company illegally raised $1.3 billion by selling XRP without proper registration. However, the case ended in August 2025 when both parties settled their appeals. SEC Commissioner Hester Peirce commented on this development: ‘This landmark decision allows the SEC to focus its efforts on creating a robust regulatory framework for cryptocurrency.’ Meanwhile, SEC Chair Paul Atkins emphasized that, ‘With this legal chapter closed, we now have an opportunity to shift our focus towards crafting comprehensive rules that foster innovation while protecting investors.’ Ripple was ultimately fined $125 million following a 2023 court ruling which categorized XRP sales to retailers as not securities. This decision came after years of legal battles surrounding XRP’s classification and sparked ongoing political debate on regulatory frameworks for digital assets. A bill aiming to establish rules for crypto, the CLARITY Act, is also currently being debated. The Ripple case’s resolution has brought about a sense of clarity in the U.S. crypto market. It fuels hope for more proactive US regulations that will keep American cryptocurrency businesses competitive on the global stage.