XRP rose over 3 percent after Ripple CEO Brad Garlinghouse announced the company is dropping its appeal in its years-long legal battle with the US Securities and Exchange Commission.
Key Takeaways
- 1Ripple is withdrawing its cross-appeal in its legal dispute with the SEC.
- 2CEO Brad Garlinghouse says the company is “closing this chapter once and for all.”
- 3XRP jumped more than 3 percent following the announcement.
- 4The SEC is also expected to drop its own appeal, potentially ending the multi-year case.
Ripple Declares End to SEC Fight
The long-running legal standoff between Ripple Labs and the US Securities and Exchange Commission (SEC) may finally be coming to a close. Ripple CEO Brad Garlinghouse announced that the company is dropping its cross-appeal against the SEC, prompting a more than 3 percent spike in the price of XRP.
“Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said,” Garlinghouse wrote in a post on X. Just hours later, XRP jumped to $2.18, a 3.36 percent rise, according to CoinMarketCap.
Ripple Shifts Focus to Growth
Garlinghouse said the company is ready to move on from the legal saga that began in December 2020.
“We’re closing this chapter once and for all and focusing on what’s most important – building the internet of Value. Lock in,” he added.
This announcement comes one day after a US district court denied a joint request from Ripple and the SEC. The motion had asked the court for an indicative ruling to reduce a $125 million civil penalty and reverse a prior order classifying Ripple’s primary XRP sales to institutional investors as securities transactions.
Court Ruling Cites Ripple’s Legal Risks
Judge Analisa Torres, who has presided over the case, issued a mixed decision. While partially granting the SEC’s request for an injunction and civil penalty, she stated:
“Ripple’s willingness to push the boundaries of the [Summary Judgment] Order evinces a likelihood that it will eventually, if it has not already, cross the line.”
Ripple Maintains XRP’s Status
Despite the court’s stance, Ripple’s chief legal officer Stuart Alderoty maintained that the core classification of XRP remains unaffected.
“The ball is back in our court,” Alderoty said, adding that the company had two options: drop its appeal or continue the legal fight.
“Either way, XRP’s legal status as not a security remains unchanged,” he said. “In the meantime, it’s business as usual.”
Four Years of Legal Turmoil
The legal battle traces back to December 2020, when the SEC sued Ripple Labs, co-founder Chris Larsen, and Garlinghouse. The agency alleged Ripple had raised $1.3 billion through unregistered securities sales via XRP.
Garlinghouse previously described the $125 million fine imposed in August 2024 as a “victory,” highlighting that it represented a 94 percent reduction from the SEC’s original request of $2 billion.
If the SEC follows through with dropping its own appeal, it would mark the formal end of a four-year conflict that has shaped the regulatory outlook for crypto assets in the United States.
CoinLaw’s Takeaway
This development marks a potential end to one of the most significant crypto enforcement cases in recent years. By ending the appeal, Ripple signals confidence in its business model and its regulatory standing. The move may also provide clarity for other crypto firms navigating SEC scrutiny. Most importantly for investors, the confirmation that XRP’s legal classification remains unchanged could bring renewed market stability.
Brian
I mean it was against their interests to try to pay less than agreed or keep the appeal going. I often do search queries about scenarios of how much this whole fiasco cost XRP and investors… a lot more than 125MM. Just pay it, trying to save 75MM is costing a lot more than the “fine”.