XRP Victory Day Marks 3rd Anniversary of Landmark SEC Ruling

XRP community marks “XRP Victory Day” as three-year anniversary of partial win over SEC July 13 is being observed by the XRP community as “XRP Victory Day,” three years after U.S. District Judge Analisa Torres issued a split summary judgment in the Securities and Exchange Commission’s long-running case against Ripple. In her July 13, 2023 order, Judge Torres rejected the SEC’s sweeping claim that every XRP transaction followed a single legal pattern. Rather than issuing a blanket ruling, she applied the Howey test transaction-by-transaction and created a practical, transaction-based framework for assessing XRP’s status under securities law. Key findings - The court concluded that XRP “in and of itself” was not automatically an investment contract. - Programmatic sales of XRP on public exchanges—trades executed via blind bid-and-ask systems where buyers could not know whether Ripple or another holder was on the other side—were found not to qualify as investment contracts. The ruling held that those buyers did not have a reasonable expectation of profits tied to Ripple’s efforts. - By contrast, roughly $728.9 million in institutional XRP sales—sold under written agreements to sophisticated buyers with associated marketing and use-of-proceeds representations—did meet the Howey criteria and therefore violated registration requirements. Aftermath, penalties and appeal process The July 2023 order did not end the litigation. The court later assessed a $125.04 million civil penalty and entered a permanent injunction aimed at preventing future unregistered institutional sales. That penalty was materially lower than what the SEC had sought, but it affirmed that a portion of Ripple’s XRP business had breached federal securities laws. In 2025 Ripple and the SEC jointly asked Judge Torres to reduce the penalty to $50 million and lift the injunction; she denied that request, saying there was no adequate basis to alter the final judgment. Both parties subsequently dropped their appeals and the case formally closed in August 2025. Inside Ripple during the fight Executives have since described how high the stakes felt inside Ripple after the SEC sued in December 2020. CEO Brad Garlinghouse told employees the company “almost decided to shut down” because of the complaint and the government’s resources. Co‑founder David Schwartz said some outside lawyers labeled Ripple “unsavable” and advised seeking personal settlements—comments that reflect private legal strategy discussions, not proof of government intent. Ripple ultimately continued operations and reportedly spent about $150 million defending the case. Broader impact The final outcome left a durable, transaction-based precedent: public exchange sales of XRP received more favorable treatment under the Howey framework, while direct institutional offerings remain constrained by securities law. The SEC also dismissed pending personal claims against Garlinghouse and executive chairman Chris Larsen in 2023, removing individual liability from the final landscape. For the XRP community, July 13 now serves as a reminder of a high-profile legal turning point that reshaped regulatory conversations around tokens and how courts may analyze crypto sales going forward.