It has not been an easy path for Ripple and the SEC in the long legal dispute over XRP sales — and here's why

Ripple and the US Securities and Exchange Commission (SEC) are involved in a legal dispute that has been ongoing for years — and despite joint attempts to end the case, it is still not over.

In 2020, the SEC accused Ripple and two of its executives of conducting an unregistered securities offering worth $1.3 billion through XRP sales. In 2023, a judge ruled mostly in favor of Ripple, marking an optimistic moment for the regulatory battles in the cryptocurrency industry.

But the SEC appealed the decision, which was followed by a cross-appeal from Ripple.

Since the election of US President Donald Trump and the appointment of cryptocurrency-friendly regulators, both parties have been trying to reach an agreement. However, legal challenges have prevented both from officially declaring the end of the long battle — although it now seems that a definitive conclusion is finally near.

Check below for the latest developments in this dispute.

Ripple CEO says 'the case is over' — March 19

In mid-March, Ripple CEO Brad Garlinghouse surprised the crypto world by announcing that the SEC would withdraw its appeal from its long-standing lawsuit against the company.

"That's it — the moment we were waiting for. The SEC is going to withdraw its appeal — a resounding victory for Ripple, for cryptocurrencies, from every perspective," Garlinghouse published on X.

The news caused XRP to rise 14% and added to other investigations and lawsuits from which the regulatory agency retreated during Donald Trump's administration.

Ripple's fine reduced to $50 million — March 25

Although initially ordered to pay a fine of $125 million, Ripple Labs reported in March that the SEC agreed to accept only $50 million to settle the dispute, with the remaining $75 million being returned to Ripple after remaining in custody.

"The SEC will keep $50 million of the $125 million fine (already held in cash custody), with the balance being returned to Ripple," published Stuart Alderoty, Ripple's legal director, on X.

Additionally, Alderoty noted that Ripple agreed to withdraw its cross-appeal, following the SEC's decision the previous week.

Ripple and SEC request suspension of appeals — April 10

After reaching a preliminary agreement in March, the parties filed their requests to suspend their respective appeals in April.

This was the first official acknowledgment that the SEC intended to withdraw its appeal, although the document indicated that the measure still depended on the approval of the agency's commissioners.

"The parties need more time to obtain the Commission's approval for this preliminary settlement and, if approved, seek a district court indicative ruling," the document stated.

Commissioner Crenshaw criticizes the settlement — May 8

Almost a month after the protocol, SEC Commissioner Caroline Crenshaw publicly criticized the agency's settlement with Ripple Labs, stating that it weakened the court order and the agency's own enforcement actions.

"This settlement, along with the programmatic dismantling of the SEC's crypto enforcement program, does a tremendous disservice to the investing public and weakens the court's role in interpreting our securities laws," Crenshaw said in a statement.

She added that the settlement was not in the interest of investors or the markets.

Judge rejects settlement — May 16

A week after Crenshaw's statement, a federal judge rejected the joint request from Ripple and the SEC to approve the settlement, which provided for the payment of only $50 million of the originally stipulated $125 million.

The judge pointed out procedural errors in the documents presented, noting that the parties ignored a rule governing relief from final judgments.

"Nothing in today's decision changes Ripple's victories," Alderoty published after the decision. "Ripple and the SEC are fully aligned to resolve this case and will revisit the issue with the court, together."

Ripple and SEC request dissolution of the injunction — June 13

Almost a month after procedural issues prevented the approval of the settlement, the parties requested the court to dissolve the injunction against Ripple and release the $125 million in funds under custody related to the original penalty.

This was the second time that the parties attempted to jointly end the dispute that began in 2020, but, as in previous attempts, the measure still required approval from Judge Analisa Torres, who had already denied prior requests.

Request denied again, $125 million fine remains — June 26

Despite the new attempt to end the long legal battle between the SEC and Ripple, Judge Analisa Torres again denied the request last Thursday.

Torres cited a "compelling case" built by the SEC over four years and found the recent arguments seeking resolution insufficient. Therefore, the judge refused to reduce the $125 million payment or suspend the injunction as requested.

"With that, the ball is back in our court," Alderoty published. "The court has given us two options: withdraw our appeal challenging the decision on historical institutional sales — or proceed with the appeal. Stay tuned. Either way, the legal status of XRP as not being a security remains unchanged. In the meantime, we continue business as usual."

Ripple announces it will withdraw the appeal — June 27

After the most recent court denial, Garlinghouse stated on Friday night that Ripple decided to withdraw its cross-appeal — and, with the SEC already having stated that it would also waive its appeal against the 2023 decision, this should finally conclude the case.

"Ripple is withdrawing our cross-appeal, and the SEC should withdraw theirs, as previously stated," Garlinghouse wrote on X. "We are closing this chapter once and for all and focusing on what matters most — building the internet of value. Game over."

If all goes as planned, this should finally close the long saga of XRP. Stay tuned for the upcoming documents that should formalize this outcome.