In a historic resolution to one of the most significant legal confrontations in the cryptocurrency industry involving Ripple vs SEC.
Ripple Labs has announced that it is officially withdrawing its cross-appeal in the lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
Ripple CEO Brad Garlinghouse confirmed on social media that both Ripple and the SEC will drop their respective appeals, effectively concluding a legal saga that began in December 2020.
The SEC had initially accused Ripple of conducting unregistered securities sales through its XRP token.
Garlinghouse’s announcement marks the end of nearly four years of litigation and a pivotal moment for Ripple, which will now shift its strategic focus toward building the “Internet of Value”.
The vision is aimed at enabling seamless global financial transactions using blockchain technology.
Legal Closure Follows Judge Torres’ Denial of Settlement Request
This resolution closely follows a recent ruling from Judge Analisa Torres, who denied a joint request from Ripple and the SEC for an indicative ruling that would support a finalized settlement.
In her statement, Judge Torres suggested that the most straightforward resolution would be for both parties to voluntarily withdraw their appeals, a path they have now taken.
Legal analysts, including attorney Fred Rispoli, had previously predicted this course of action, citing diminishing incentives for either side to pursue extended litigation in a rapidly shifting regulatory landscape.
With the appeals dropped, Judge Torres’ earlier rulings, including the landmark determination that XRP sales on secondary markets do not constitute securities offerings.
Also, it will now remain legally binding, bringing greater clarity to XRP’s regulatory classification in the U.S.
Also Read: US SEC Drops Lawsuit Against Binance, Signaling Regulatory Shift
Ripple to Pay $50 Million Penalty in Final Settlement Agreement
As part of the agreement finalizing the case, Ripple will pay a $50 million penalty, a significantly reduced amount from the original $125 million ordered in Judge Torres’ prior judgment.
The reduction reflects months of legal negotiations and strategic recalibrations by both Ripple and the SEC.
Ripple had initially filed a appeal in an effort to reduce the fine and challenge the court’s injunctions, while the SEC had been advocating for a more severe penalty.
However, under its current leadership and amid shifting political and regulatory tides, especially in the wake of former President Trump’s return to the political stage, the SEC has taken a more conciliatory posture.
The settlement avoids further court entanglements while signaling a more pragmatic regulatory approach in the evolving digital asset landscape.
XRP Price Jumps 5% as Markets React to End of Legal Uncertainty
The market responded positively to the news, with XRP experiencing a 4.92% price surge, climbing to $2.20 in the 24 hours following the announcement.
The token now holds a market capitalization of approximately $129.2 billion, with a 24-hour trading volume exceeding $2.7 billion.
The price increase is seen as a direct result of the renewed investor confidence following the elimination of long-standing legal uncertainties.
With 59 billion XRP in circulation, Ripple is now well-positioned to expand its services globally, especially in the realm of cross-border payments and blockchain-based financial solutions.
Judge Torres’ previous ruling that XRP is not a security when traded on secondary markets adds a layer of regulatory certainty.
The certainty could could pave the way for greater adoption by institutions and renewed interest from U.S.-based crypto platforms.
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