Ripple is set to conclude its nearly five-year legal saga with the U.S. Securities and Exchange Commission (SEC), as the blockchain company announced it would drop its cross-appeal in the closely watched case. This move signals the impending end of one of the cryptocurrency industry’s most significant court battles.
Ripple CEO Brad Garlinghouse confirmed the decision on social media today, also revealing that the SEC is expected to withdraw its own appeal. Garlinghouse stated, “We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value.”
The decision by Ripple follows Judge Analisa Torres’ recent denial of a joint motion for an indicative ruling, marking the second time she dismissed the appeal related to the SEC’s initial lawsuit.
The SEC first sued Ripple in December 2020, alleging that the company conducted an unregistered securities offering through the sale of its XRP tokens to institutional investors. In a landmark split decision in July 2023, Judge Torres ruled that while XRP itself is not a security, and secondary market sales do not violate securities laws, Ripple’s direct sales of XRP to institutional investors did constitute unregistered securities offerings.
This ruling was largely seen as a significant victory for the crypto industry, providing crucial clarity that programmatic sales and secondary market trading of XRP are not under SEC jurisdiction. However, the finding regarding institutional sales exposed Ripple to potential financial penalties.
Ripple’s Chief Legal Officer, Stuart Alderoty, explained that the court had presented options: either dismiss its appeal challenging the prior finding on historical institutional sales of XRP or proceed with the appeal and continue the litigation. Ripple’s choice to abandon its cross-appeal effectively brings an end to the litigation over the institutional sales ruling, thereby avoiding further legal expenses and ongoing uncertainty.
The SEC had previously indicated its intent to appeal the ruling on XRP’s non-security status but later suggested it would drop that appeal. With both appeals now set to be withdrawn, the case concludes a chapter that has profoundly shaped the regulatory landscape for cryptocurrencies for nearly five years.
The outcome preserves XRP’s legal clarity within the U.S. market while finalizing Ripple’s settlement exposure. The company is anticipated to pay a civil penalty related to the institutional sales, with the final amount yet to be determined.
With the legal battle behind it, Ripple plans to redirect its focus toward expanding global payment corridors, enhancing token utility, and increasing adoption of its XRP Ledger, advancing its vision for an “Internet of Value.”
