XRP: Ripple Ends SEC Appeal, Closing Legal Battle

XRP achieved a pivotal moment this week as Ripple Labs officially ended its cross-appeal against the U.S. Securities and Exchange Commission (SEC), bringing a multi-year legal saga to a close. The resolution was announced by Ripple’s CEO Brad Garlinghouse in a public statement on X, marking the final chapter of a case that has dominated the crypto regulatory landscape since 2020.

“Ripple is dropping our cross appeal, and the SEC is expected to drop their appeal too,” Garlinghouse stated in his post on X. “We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value. Lock in.”

This announcement had an almost immediate impact on XRP’s momentum, with the cryptocurrency recording a modest 1.4% uptick in response to the news. For Ripple, it signals a renewed focus on development and innovation within the blockchain space, shifting away from the shadow of regulatory uncertainty.

The decision follows months of complex negotiations and courtroom exchanges. Most recently, U.S. District Judge Analisa Torres of the Southern District of New York rejected a joint appeal from both Ripple and the SEC that sought to revise the agreed civil penalties. The proposal would have reduced Ripple’s fine to $50 million and lifted a permanent injunction that restricts certain company activities—terms the court did not find compelling.

Judge Torres raised concerns about the request, questioning the rationale for removing the injunction if Ripple was still considered at risk of violating securities laws. As she explained in her ruling, “Indeed, if the Court should not be concerned about Ripple violating the law, why do the parties want to eliminate the injunction that tells Ripple, ‘Follow the law’? When the Court imposed the injunction, it did so because it found a ‘reasonable probability’ that Ripple would continue violating federal securities laws. This has not changed, nor do the parties claim that it has.”

This was actually the second time Torres rejected a joint settlement proposal. In May, she previously dismissed an earlier version of the agreement due to jurisdictional and procedural issues. Undeterred but clearly limited by judicial constraints, Ripple has now opted to move forward by accepting the original penalty structure: a civil fine of $125 million, while the injunction remains in effect.

No official statement from Ripple’s press team has followed the CEO’s remarks, and the SEC has so far maintained silence on the final disposition of its appeal.

The conflict between Ripple and the SEC dates back to 2020, originating under the leadership of former SEC Chair Jay Clayton. The regulatory body alleged Ripple’s sale of XRP tokens amounted to unregistered securities offerings, violating federal securities laws. After extensive discovery and legal arguments, Judge Torres issued a landmark ruling in 2023, partially siding with Ripple. She determined that XRP sales to retail users via public exchanges were not securities transactions. However, she ruled that sales to institutional clients did constitute securities offerings, thus affirming part of the SEC’s claim.

Ripple’s choice to abandon further legal escalation in light of these decisions reflects a strategic pivot. Rather than risking additional penalties or protracted litigation, the company appears committed to stabilizing operations and focusing on its core mission within the blockchain ecosystem.

As the dust settles on one of the most high-profile legal battles in cryptocurrency history, XRP holders and blockchain observers alike are left with cautious optimism. While the permanent injunction may remain a point of contention, Ripple can now proceed without the constant overhang of appeal proceedings—potentially freeing up energy and resources to drive innovation and global expansion.

Related: Expert Advice: Sell XRP If You’re Confused

The Ripple-SEC case will undoubtedly continue to shape the legal interpretations and future oversight of blockchain-based assets in the U.S. For Ripple, though, the focus has clearly shifted toward building infrastructure aimed at evolving the Internet of Value, leaving legal woes in the rearview mirror.