XRP Bull Situation Expands as New Court Filing Ends Long-Running Investor Lawsuit

• Court rules XRP early sales do not qualify as unregistered securities.

• Ripple’s legal position strengthens after statute-of-repose ends claims.

• Class-action lawsuit fails, closing major uncertainty for XRP token holders.

XRP has gained clarity as the Ninth Circuit upheld the dismissal of a federal class action lawsuit. The ruling reinforces that early XRP token distributions are legally valid. This decision marks a significant closure for Ripple Labs in a multi-year legal dispute.

Case Timeline and Federal Ruling

The lawsuit originated in 2018 when Bradley Sostack filed claims against Ripple Labs and XRP II LLC. He alleged violations of the Securities Act of 1933, claiming XRP sales were unregistered securities. The lower court dismissed the claims in 2024, citing the statute of repose for federal claims.

Sostack appealed, arguing that XRP releases in 2017 restarted the legal timeline. The Ninth Circuit reviewed the record and concluded no new offering occurred, affirming the lower court. Judges emphasized that XRP remained unchanged since its initial public distribution in 2013.

The court rejected arguments based on integration tests or broader economic theories. It noted the original complaint was filed years after the legal deadline expired. The ruling permanently bars federal class claims related to XRP sales before 2016.

Legal Implications for Ripple and XRP

The decision confirms that XRP early distributions are legally protected under federal law. Ripple’s legal position strengthens, providing clarity around secondary market token transactions. Courts clarified that escrow releases and marketing efforts in 2017 do not constitute a new offering.

The ruling is limited to federal claims, leaving state-law claims unresolved but significantly reduces uncertainty. Legal analysts view this as a positive precedent for crypto assets and structured token sales. The court reinforced that statutes of repose ensure predictability and finality in securities claims.

Ripple has previously secured wins in the SEC case, which ended after a voluntary withdrawal of the appeal. XRP is now viewed as a non-security in U.S. markets for early distributions. The latest court filing aligns with Ripple’s long-term legal strategy and ongoing advocacy for clearer crypto regulations.

Market Context and Regulatory Outlook

Despite the legal clarity, XRP price showed little movement, trading near $1.90 during the latest session. Traders indicated minimal market reaction, suggesting confidence has been priced in over time. Ripple continues to push for regulatory clarity, supporting bills like the Market Clarity Act.

The White House has scheduled meetings with crypto and banking leaders to discuss regulatory frameworks. Ripple maintains that clear rules will reduce future disputes and support industry stability. With federal claims dismissed, Ripple can focus on policy engagement and market development initiatives.