Ripple Labs has scored another significant legal triumph in the United States, marking a noteworthy win for the broader cryptocurrency community. On January 27, 2026, the United States Court of Appeals for the Ninth Circuit ruled in favor of Ripple, dismissing a long-standing XRP investor lawsuit.
The Details of the Court Ruling
The case, Sostack v. Ripple Labs, centered around allegations that XRP was sold as an unregistered security. Investors argued that the company’s XRP sales violated the Securities Act of 1933. However, the court ruled that these claims were time-barred, as the legal timeframe to file such lawsuits had lapsed.
The judicial panel emphasized that XRP had been made available to the public as early as 2013, which started the statute-of-limitation clock. Under U.S. securities law, plaintiffs had just three years to take legal action. The lawsuit, filed in 2018, missed the deadline by several years.
Key Points From the Decision
- The court ruled that XRP releases in 2017 did not constitute a new securities offering, as XRP’s nature as a fungible and interchangeable digital asset had not changed since 2013.
- Judges rejected claims that subsequent sales of XRP should qualify as fresh investment contracts under securities law.
This decision, although “not for publication” and therefore non-precedential, adds to the growing confidence in Ripple’s legal position, particularly concerning secondary market sales of XRP.
Ripple’s Legal Momentum
This lawsuit was separate from the ongoing SEC enforcement action against Ripple, but legal experts believe the ruling strengthens Ripple’s position in the broader crypto market. Many analysts highlight that the decision could help solidify Ripple’s argument that XRP transactions in secondary markets are not automatically securities offerings.
While this victory doesn’t directly impact Ripple’s battle with the SEC, it relieves one more burden for the blockchain company, as the court permanently closed the case.
XRP Price Reaction
Despite the favorable ruling, XRP’s price movements remain subdued. Currently trading around $1.90, XRP has shown minimal changes following the news, declining 0.11% in the past 24 hours. Analysts note that the market’s lukewarm reaction stands in contrast to the sharp spikes typically seen by other altcoins after such significant news, prompting traders to dub XRP as an asset always met with an “it’s nothing special” sentiment.
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