BREAKING: Ripple to Drop Cross Appeal Against SEC, Marking End of XRP Lawsuit Saga

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BREAKING: Ripple to Drop Cross Appeal Against SEC, Marking End of XRP Lawsuit Saga

Ripple to Drop Cross Appeal Against SEC

Ripple Labs Inc. has announced it will drop its cross appeal in the long-running XRP lawsuit against the U.S. Securities and Exchange Commission (SEC). The move marks the likely conclusion of a multi-year legal battle that began in December 2020, reshaping crypto regulation and influencing market perception of XRP.

Ripple CEO Brad Garlinghouse took to X (formerly Twitter) to make the announcement, stating: “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.”

This post signals the formal end of Ripple’s legal challenges and potentially opens a new era for XRP’s regulatory clarity and mainstream adoption.

Timeline of the XRP vs SEC Lawsuit

The SEC originally filed a lawsuit against Ripple in December 2020, alleging that the company’s sale of XRP constituted an unregistered securities offering. The complaint stated that Ripple raised over $1.3 billion without registering XRP as a security.

Key Milestones:

  • Dec 2020: SEC files suit against Ripple Labs
  • July 2023: Judge Analisa Torres issues partial summary judgment
  • March 2024: SEC moves for a final judgment and stiff penalties
  • June 26, 2025: Judge Torres denies SEC’s motion to reduce penalties or lift injunction
  • June 27, 2025: Ripple confirms it is dropping cross appeal, SEC expected to do the same

What Was at Stake in the Appeal?

The SEC’s latest request sought two major concessions:

  1. Lifting the permanent injunction requiring Ripple to comply with securities laws in future sales.
  2. Reducing the monetary penalties imposed on Ripple by more than 50%.

Judge Torres rejected both points in a concise ruling, stating plainly: “The request is DENIED.”

Ripple had filed a cross appeal to challenge certain parts of the earlier ruling, particularly related to institutional sales of XRP being labeled as unregistered securities transactions. However, in a move that suggests strategic resolution and forward focus, Ripple has withdrawn that appeal.

The decision to drop both appeals signifies the likely conclusion of the XRP case, one of the most closely followed legal battles in crypto history.

Key Impacts:

  • Legal Clarity: XRP remains not a security when traded on exchanges by retail users.
  • Market Sentiment: XRP price surged over 8% within hours of the news, with analysts predicting further upside.
  • Regulatory Precedent: The outcome may influence future SEC actions against crypto companies.

Brad Garlinghouse: “Time to Build the Internet of Value”

Ripple’s CEO Brad Garlinghouse emphasized that the decision reflects a pivot toward innovation over litigation. The company is now shifting focus toward global payments, XRP Ledger development, and real-world crypto utility.

“This chapter is closed. Let’s build.” – Brad Garlinghouse, CEO, Ripple

With the legal cloud lifted, Ripple is expected to accelerate expansion plans across Asia, the Middle East, and Latin America.

The XRP Price Outlook

The news of Ripple’s legal resolution has fueled a bullish outlook for XRP, which is now trading near $0.78, up from $0.72 before the announcement.

Technical Levels:

  • Resistance: $0.85, $1.00
  • Support: $0.70, $0.64

With legal risk diminished, institutional investors may now revisit XRP as a viable asset class, especially with increasing demand for regulated blockchain solutions.

Industry Reactions

The broader crypto community, including legal experts and analysts, welcomed the news:

  • John Deaton, crypto lawyer: “A huge win for Ripple, XRP holders, and crypto innovation in the U.S.”
  • Coinbase’s Legal Team: “This confirms the importance of clarity in crypto regulation. A step forward.”
  • Messari Crypto: “We expect a wave of positive momentum in XRP adoption.”

Regulatory Implications Beyond XRP

This outcome may serve as a blueprint for future crypto regulation:

  • SEC may be less aggressive in targeting tokens with active utility.
  • Courts are taking a balanced approach between investor protection and innovation.
  • Crypto projects may gain more confidence to operate without fear of sudden enforcement.

It also opens the door for XRP to be listed on more U.S. exchanges and integrated into regulated products such as ETFs and payment rails.

Frequently Asked Questions (FAQs)

Q1: Why did Ripple drop its cross appeal against the SEC?
A: Ripple aims to end the multi-year legal dispute and focus on innovation rather than litigation.

Q2: What was the SEC’s appeal about?
A: The SEC wanted to reduce Ripple’s penalties and lift the injunction requiring future compliance with securities laws.

Q3: What did the court rule on June 26, 2025?
A: Judge Torres denied the SEC’s motion to reduce penalties and remove the injunction.

Q4: Is XRP officially declared not a security?
A: Yes, retail sales of XRP on exchanges are not considered securities. Institutional sales were ruled as unregistered but are now resolved.

Q5: Will this decision impact other crypto tokens?
A: Yes, it may influence how courts view token utility and how the SEC approaches future cases.

Q6: What does this mean for XRP holders?
A: It removes a major legal overhang, potentially paving the way for greater adoption and price appreciation.

Q7: How is Ripple planning to move forward?
A: Ripple will focus on global expansion, development of the XRP Ledger, and enhancing cross-border payment systems.

Q8: Will the SEC file more cases like this in the future?
A: Possibly, but the Ripple case outcome may discourage overly aggressive enforcement.

Conclusion

Ripple’s decision to drop its cross appeal against the SEC, combined with the agency’s expected withdrawal, brings an official end to a landmark crypto lawsuit that has shaped the future of blockchain regulation in the U.S.

With legal uncertainty resolved, XRP is well-positioned for resurgence in both market value and utility. Ripple’s renewed focus on building the “Internet of Value” could mark a new chapter of adoption, growth, and innovation.

This outcome doesn’t just conclude a lawsuit — it potentially sets a new standard for crypto regulatory clarity.

⚠️ Disclaimer

The information in this article is for informational and educational purposes only and does not constitute financial or legal advice. Cryptocurrency investments are highly volatile and may not be suitable for all investors. Please conduct your own research and consult a licensed advisor before making any investment decisions.

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