Ripple to abandon cross-appeal in SEC lawsuit

In a pivotal turn in the long-running legal battle with the US Securities and Exchange Commission (SEC), Ripple Labs has announced it is withdrawing its cross-appeal in the case. The SEC is also expected to drop its appeal, signaling a potential end to the high-profile lawsuit.

Ripple CEO Brad Garlinghouse shared the news in a statement on X, writing:

“Ripple is dropping our cross appeal, and the SEC is expected to drop their appeal, as they’ve previously said. We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value. Lock in.”

The action came fewer than 24 hours after a judge, Analisa Torres, refused a joint request from the parties for an “indicative ruling” that would have allowed her to approve a revised settlement without a full appellate review.

The company and the SEC have shown no sign that they want to escalate the case through the rounds of appeals; instead, both sides have referenced the judge’s suggestion that the case should end with both of them dropping their lawsuits.

The XRP suit, filed by the SEC in December 2020, accused Ripple of conducting an unregistered securities offering through sales of XRP tokens. The case rapidly turned into a legal bellwether for how US regulators may treat cryptocurrencies more broadly.

Ripple and SEC legal saga is nearing end

Ripple’s decision to withdraw its cross-appeal follows months of fierce negotiations and a blizzard of court filings over the past year.

The court had ruled in July of 2023 in a split decision that while Ripple’s institutional sales of XRP violated securities laws, the company’s programmatic sales (sales on exchanges) did not. In her written opinion, Judge Torres also said that XRP is not a security, delivering a partial victory to Ripple.

However, the SEC’s rattling against the crypto industry cooled after political power in the country shifted following Donald Trump’s re-election to the Oval Office in 2024. In a warmer environment in crypto, the commission restarted discussions with Ripple about settling the case.

The SEC also said it would ask the court to lift the freeze on Ripple’s ability to engage in such transactions.

But Judge Torres rejected the revised settlement twice anyway — first over its procedural deficiencies, then because she believed that the parties had not proved significant “exceptional circumstances” that would merit straying from the norm. Rather than pushing on, Ripple and the SEC allowed things to settle.

XRP price pumps on legal resolution

The crypto community reacted enthusiastically as news of the XRP lawsuit nearing its conclusion sparked a strong rally in the token’s price.

With the SEC now using more measured language, some analysts see this as a positive indication that future regulatory actions may be less aggressive and more balanced.

Legal analysts hailed the exit plan as a savvy and dignified solution to one of the most closely watched crypto cases in recent years.