XRP Ledger: Digital Payments and the SEC Battle

The XRP Ledger was launched by engineers David Schwartz, Jed McCaleb, and Arthur Britto. The ledger used a novel consensus protocol that did not require mining, enabling transaction settlement in 3-5 seconds. All 100 billion XRP tokens were pre-mined at inception, with 80 billion XRP gifted to the company that became Ripple Labs.

OpenCoin (later renamed Ripple Labs) was founded by Jed McCaleb, Arthur Britto, and Chris Larsen to develop and promote adoption of the XRP Ledger. The company focused on cross-border payment solutions for banks and financial institutions using XRP as a bridge currency for settlement between different fiat currencies.

XRP reached an all-time high of approximately 3.84 USD during the 2017 cryptocurrency bull market, achieving a market capitalization exceeding 80 billion USD. The price surge was driven by optimism about Ripple's partnerships with financial institutions and speculation about XRP's role in transforming cross-border payments.

The US Securities and Exchange Commission filed a lawsuit against Ripple Labs and its executives Chris Larsen and Brad Garlinghouse, alleging that XRP was an unregistered security offering. Many cryptocurrency exchanges delisted XRP following the announcement, and the token's price dropped sharply. The lawsuit became the most closely watched case in cryptocurrency regulation.

Judge Analisa Torres of the Southern District of New York issued a landmark summary judgment ruling that XRP is not inherently a security. The court found that programmatic sales of XRP on exchanges did not meet the Howey Test requirements, though institutional sales were deemed securities transactions. The ruling was celebrated as a partial victory for Ripple and the broader crypto industry.

The SEC voluntarily dismissed its remaining claims against Ripple executives Chris Larsen and Brad Garlinghouse with prejudice, meaning the charges could not be refiled. The decision followed the July summary judgment ruling and removed personal liability risk from the two executives. Several exchanges that had delisted XRP began relisting the token.

The court issued the final judgment in the SEC v. Ripple case, ordering Ripple to pay a civil penalty of 125 million USD for institutional sales violations. The penalty was significantly lower than the nearly 2 billion USD the SEC had originally sought. The judgment also established an injunction against future securities law violations by Ripple.

The SEC filed a notice of appeal challenging the July 2023 ruling that programmatic XRP sales on exchanges were not securities. Both Ripple and individual defendants filed cross-appeals challenging the institutional sales ruling and remedies. The appeal ensured that the legal status of XRP remained unresolved at the appellate level.

President Donald Trump announced that XRP was one of five digital assets designated for the planned US crypto strategic reserve under a March 2025 executive order. The White House officially published the order on March 6, 2025, marking the first time XRP received formal recognition as a strategic US government asset.

On August 7, 2025, Ripple Labs and the U.S. Securities and Exchange Commission filed joint motions to dismiss all remaining appeals, formally concluding the lawsuit filed in December 2020. The dismissal made final the 2023 ruling that XRP sales to retail investors on public exchanges were not securities transactions, while the 125 million USD penalty paid by Ripple remained in force. The resolution ended nearly five years of legal uncertainty over XRP's status in the U.S. market.

On October 24, 2025, Ripple completed its 1.25 billion USD acquisition of Hidden Road, one of the fastest-growing non-bank multi-asset prime brokers, and rebranded it Ripple Prime. The close made Ripple the first crypto company to own and operate a global prime brokerage spanning FX, digital assets, derivatives, swaps and fixed income; Ripple said the unit's business had tripled since the deal's April 2025 announcement, with the RLUSD stablecoin in use as collateral for prime brokerage products.

CSD BR, a Brazilian operator of regulated securities registration, depository and settlement systems overseeing roughly 4 trillion USD in registered assets, began mirroring ownership records of selected BTG Pactual investment funds on the public XRP Ledger, in partnership with Ripple. The blockchain copy lets approved institutions verify ownership changes in real time and reduce costly reconciliation, while CSD BR's existing database remains the official record. CSD BR and Ripple plan to explore issuing and trading assets directly on the ledger, potentially including real-estate and agribusiness receivables.

The XRP Ledger's PermissionDelegationV1_1 amendment (XLS-75) activated on October 8, 2026, after holding above 80 percent validator support since September 24. Account holders can now assign up to 10 granular permissions, such as payments and trustline management, to other accounts without sharing private keys, letting token issuers separate compliance, operations and treasury roles. The upgrade strengthens XRPL's institutional controls as banks and stablecoin issuers build regulated products on the ledger.