Ripple Ends Legal Battle with SEC, Drops Cross-Appeal

Ripple Labs has decided to end its prolonged legal fight with the U.S. Securities and Exchange Commission (SEC), marking a significant milestone in one of crypto’s most closely watched court battles. Ripple CEO Brad Garlinghouse announced that the company is dropping its cross-appeal, and the SEC is expected to do the same.

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

Following the announcement, XRP rose 1.4%, reflecting modest market optimism.

The move comes after U.S. District Judge Analisa Torres rejected a joint request by Ripple and the SEC to approve a settlement that would reduce Ripple’s civil penalty to $50 million and remove a permanent injunction. Torres objected to lifting the injunction, questioning why Ripple should be exempt from a legal order to follow securities laws, especially given her prior finding of a “reasonable probability” that Ripple could continue violations.

This is the second time Torres rejected a proposed settlement—the first was in May, citing procedural and jurisdictional issues. With the court unlikely to compromise, Ripple has now accepted the original $125 million civil penalty, and the permanent injunction is expected to remain in place.

The SEC originally sued Ripple in 2020, alleging that XRP sales to institutional investors violated securities laws. In a 2023 ruling, Torres differentiated between institutional sales, which were deemed securities transactions, and retail sales on public exchanges, which were not.

Ripple’s legal chapter with the SEC now appears closed, allowing the company to shift its focus back to product development and global expansion.