The protracted legal saga between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is drawing to a close. Ripple’s CEO, Brad Garlinghouse, revealed on Friday that the company intends to withdraw its cross-appeal in the high-profile case. “Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said,” Garlinghouse conveyed on X. This move marks the end of a tumultuous chapter for Ripple, allowing the company to refocus on its mission of building the “Internet of Value.”
A Protracted Legal Drama
The legal confrontation between Ripple and the SEC has been a focal point for the cryptocurrency sector since the SEC first filed its lawsuit in 2020. The SEC, under then-Chair Jay Clayton, accused Ripple of conducting unregistered securities offerings through the sale of XRP, igniting a fierce legal battle that has captivated crypto enthusiasts and legal experts alike.
In a significant turn of events just a day before Ripple’s announcement, U.S. District Judge Analisa Torres of the Southern District of New York rejected a proposed settlement agreement between the two parties. The agreement aimed to reduce Ripple’s civil penalty to $50 million and lift a permanent injunction against the firm. Judge Torres, however, was not convinced, questioning the rationale behind removing an injunction that mandates Ripple to “Follow the law.”
Ripple’s Strategic Pivot
Ripple’s decision to abandon its cross-appeal, while seemingly conceding to the court’s terms, could be seen as a strategic pivot. By accepting the original $125 million civil penalty and maintaining the injunction, Ripple appears to be choosing certainty over continued legal entanglements. A spokesperson for Ripple Labs was unavailable for immediate comment, but industry analysts speculate that the resolution of this case could refocus Ripple’s energies on its core business operations. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Crypto markets reacted mildly to the news, with XRP witnessing a modest 1.4% increase. This tepid response reflects both relief and caution among investors, who have been navigating the choppy waters of regulatory scrutiny for years.
The Ripple Effect on Crypto Regulation
Judge Torres’s 2023 ruling, which differentiated between XRP sales to retail traders and institutional investors, has already set a legal precedent with far-reaching implications for the crypto world. The ruling clarified that XRP sales to retail traders on public exchanges do not constitute securities transactions—a victory of sorts for Ripple and a potential boon for the wider cryptocurrency market. As explored in our recent coverage of spot crypto ETF filings for XRP, SOL, DOGE, the regulatory landscape is evolving, with increasing approval odds for such financial products.
Yet, the lingering injunction and the hefty fine underscore the regulatory challenges that crypto firms continue to face. As Ripple turns the page on this saga, the broader implications for regulatory clarity remain a subject of intense debate. Will this case serve as a template for future SEC actions, or will it prompt a reevaluation of the regulatory framework governing digital assets?
Looking Ahead
As Ripple closes this legal chapter, the crypto industry watches closely. The resolution of this case may pave the way for increased institutional adoption of digital assets, as regulatory uncertainties gradually diminish. However, questions remain about the SEC’s next moves and how they will shape the regulatory landscape.
For Ripple, the end of this legal battle offers a chance to redirect focus towards innovation and expansion. The company’s commitment to the “Internet of Value” signals an ambitious vision for the future—one that seeks to revolutionize how value is transferred globally.
As 2025 unfolds, the crypto community is left pondering: Will Ripple’s resolve and the lessons learned from this legal odyssey drive the next wave of innovation and regulation in the digital asset space? Only time will tell.
Source
This article is based on: Ripple to Drop Cross-Appeal Against SEC, Ending Years-Long Legal Battle With SEC
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
