Ripple and SEC Withdraw Appeals, Concluding a Five-Year Legal Stalemate
Ripple and the U.S. Securities and Exchange Commission have come to a mutual decision to conclude one of the most closely observed legal conflicts in the crypto space. Both parties are retracting their appeals, thereby finishing nearly five years of judicial proceedings concerning the classification of XRP. Ripple’s CEO, Brad Garlinghouse, publicly acknowledged the choice, stating the firm is now fully prepared to move forward.
This move follows a sequence of judgments, discussions, and attempted resolutions that kept the sector uncertain for several years. While several issues remain unresolved, both Ripple and the SEC appear to have concluded that pursuing further confrontation was no longer beneficial.
How It All Began
The SEC initiated legal action against Ripple in December 2020, accusing the company of raising over $1.3 billion via the sales of XRP as an unregistered safety. Ripple contested this, asserting that XRP ought to be regarded as a currency, rather than an investment contract. The ensuing events led to a lengthy legal struggle that saw partial victories and defeats for both parties.
BOOOOOOOOOOOOOOOOOOM!!!@Ripple is withdrawing its cross appeal, and the SEC is predicted to drop their appeal!
Cheers to #XRP holders!
pic.twitter.com/jGcij0Fa1A
— JackTheRippler © (@RippleXrpie) June 27, 2025
In 2023, Judge Analisa Torres determined that XRP traded on public exchanges did not breach securities regulations. Nonetheless, she also ruled that Ripple’s institutional XRP sales did breach the laws. This ruling initiated a complex series of appeals. Ripple contested the decision on institutional sales, whereas the SEC sought to contest the finding that XRP used by retail traders did not fall under securities legislation.
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Why They’re Stepping Back Now
Earlier this month, Ripple and the SEC aimed to achieve a conclusive resolution. Ripple proposed to pay a reduced penalty and conclude the case. However, the judge rejected this, asserting that her prior ruling remained in effect and neither party could evade it. This made it evident that the appeals process would prolong, with no assurance of a favorable outcome for either side.
Ultimately, both Ripple and the SEC appear to have concluded that it was time to cease. By retracting the appeals, they secure the current court judgments and mitigate the potential of a higher court undermining any segment of the ruling. This indicates the mixed outcome from the previous year will remain: XRP does not qualify as a protection when exchanged, but it does when sold to institutional buyers in the manner Ripple initially undertook it.
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Implications for the Market
The conclusion of this legal dispute alleviates a significant uncertainty that has loomed over XRP and, more generally, over crypto regulation in the U.S. For Ripple, it allows for a concentrated effort in expanding its payment services and developing the XRP Database without the ongoing distraction of legal proceedings and costs.
For the sector, this could signify a pivotal moment. Regulators and crypto asset entities have been mired in legal battles regarding the categorization of digital assets for the last several years. This case exemplified such disputes. With it concluded, there might be enhanced opportunities for collaboration or at least greater clarity on what constitutes a safety.
What Lies Ahead
Ripple still faces a potential penalty linked to its historical institutional sales, but the appeals have been resolved. Moving forward, attention will turn to how the company regains momentum and how regulatory bodies react. With Congress reviewing new laws and other legal challenges still active, while the XRP case may be closed, the larger discussion surrounding cryptocurrency regulations is far from concluded.
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Key Takeaways
- Ripple and the SEC have officially concluded their appeals, ending a legal confrontation regarding the classification of XRP lasting nearly five years.
- Judge Torres’ ruling from 2023 stands: XRP does not qualify as a security when traded on exchanges, but it does when sold to institutional buyers.
- Both sides opted to step back from their appeals to mitigate additional risks and legal expenses, thereby solidifying a mixed court result.
- The resolution of this case eliminates a significant regulatory obstacle for Ripple, providing clarity for XRP holders.
- While the Ripple-SEC case has concluded, the broader dialogue concerning cryptocurrency regulations and asset classification continues on in the courts and Congress.
The post Ripple and SEC Drop Appeals, Ending a Five-Year Legal Standoff appeared first on 99Bitcoins.
