- Ripple drops its cross-appeal as the SEC also withdraws, officially ending the prolonged legal conflict over XRP sales.
- CEO Brad Garlinghouse confirms Ripple will now focus on building the Internet of Value, shifting fully to utility and development.
- The SEC’s initial $125 million penalty remains, while the permanent injunction likely stays in place following the court’s prior rejection.
Ripple has officially ended its multi-year legal dispute with the U.S. Securities and Exchange Commission by dropping its cross-appeal.
Ripple and SEC Settle on Terms of Final Resolution
Ripple Labs will no longer pursue its cross-appeal in the long-standing lawsuit filed by the U.S. SEC in 2020. CEO Brad Garlinghouse confirmed the move, stating the SEC is also expected to drop its own appeal. Ripple will now accept the original $125 million civil penalty, concluding a key chapter in one of the industry’s most followed legal battles.
This decision follows the rejection of a joint settlement request by Judge Analisa Torres. The proposal aimed to reduce Ripple’s penalty to $50 million and remove the permanent injunction. Torres questioned the intent behind eliminating the injunction, citing ongoing concerns about potential violations.
Garlinghouse emphasized that the company is now shifting its focus back to development, saying, “We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value.”
Judge Torres Rejects Attempted Settlement Revision
Judge Torres had previously ruled in 2023 that XRP sales to institutional investors violated federal securities laws. However, she determined that XRP transactions on public exchanges were not securities. Despite this split decision, the court imposed a permanent injunction on Ripple, citing a “reasonable probability” of continued violations.
The latest settlement rejection marked the second denial. The judge previously dismissed a similar motion in May due to jurisdictional issues. In the most recent denial, Torres noted that the justification to remove the injunction was not adequately presented by either party.
Without court approval to alter the terms, Ripple opted to end its appeal and accept the initial ruling, effectively closing the case.
XRP Sees Modest Price Movement as Case Ends
XRP saw a price increase of 4.4%, trading at 2.19 as of writing, following news of Ripple’s decision to end the legal fight. While the price reaction was measured, the resolution brings clarity to XRP’s regulatory standing in the United States.
The original lawsuit was filed in December 2020 during former SEC Chair Jay Clayton’s tenure. Since then, the case has shaped much of the discussion around crypto asset classification and enforcement in the U.S. market.
