Ripple Drops Cross-Appeal as SEC Expected to Withdraw Its Case

Highlights:

• The Brad Garlinghouse-led company has dropped its cross-appeal against the regulatory body and expects it to do the same.
• Judge Torres denied a joint motion to reduce Ripple’s fine, and both parties later agreed on a lower penalty of 50 million.
• XRP has rallied 4.64% after the CEO announced the position of the company.

Ripple Labs has confirmed that it will drop its cross-appeal against the U.S. Securities and Exchange Commission. Brad Garlinghouse announced the move in a post on X. The CEO also stated that the commission is expected to drop its appeal, based on previous communications. This decision follows a suggestion from Judge Analisa Torres that both sides could end the case by withdrawing their appeals. Ripple described this step as a way to move on and focus on its long-term goals.

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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. https://t.co/ZsRgDfcpLh

— Brad Garlinghouse (@bgarlinghouse) June 27, 2025

The lawsuit began in December 2020 and has lasted for more than four years. It focused on the unregistered institutional sales made by Ripple of XRP, amounting to over $1.3 billion. The lawsuit impaired the operations of Ripple and undermined the XRP currency in the market. Both parties have, however, decided to settle instead of proceeding with appeals. The announcement has caused the price of XRP to rise by 4.64% to $2.18 in the daily chart. Meanwhile, the market cap stands at $129.26 billion.

Ripple Drops Cross-Appeal After Judge Rejects Joint Motion

Before the appeals were dropped, Ripple and the SEC filed a joint request asking the court for an indicative ruling. They wanted the judge to reduce the $125 million penalty against Ripple and to dissolve the injunction. Judge Torres denied the motion and cited the absence of exceptional circumstances. She also raised concerns about Ripple’s approach, saying that the company risked crossing the line set in her earlier summary judgment.

Ripple will pay a penalty amount of $50 million, which is much lower than what a court had initially ordered. This settlement will bring an end to a long history of litigation against Ripple.

Judge Torres, a district judge of the United States District Court for the Southern District of New York, had previously ruled XRP was not a security in itself. However, she determined that the blockchain company had breached the securities laws with respect to its past sales of XRP to institutional investors. Legal expert Fred Rispoli had predicted that both sides might end their appeals to avoid more court proceedings.

Regarding when this all ends…there is a status report due by the parties to the 2nd Circuit in August. One of two things will be in that report:

(1) Parties ask the appellate court to reinstate the briefing schedule and appeal goes on. In that scenario, case doesn't end until… https://t.co/voUIkOUBxa

— Fred Rispoli (@freddyriz) June 26, 2025

Ripple and SEC End Lawsuit with Reduced Penalty Deal

Ripple and the SEC have now agreed to conclude the lawsuit without any additional legal action. The final settlement includes a $50 million payment by Ripple and no further appeals from either side. According to Stuart Alderoty, Chief Legal Officer at Ripple, the company would not appeal the judgment on institutional sales made by the court. He also pointed out that the legal status of XRP has not changed.

With this, the ball is back in our court. The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales—or press forward with the appeal. Stay tuned. Either way, XRP’s legal status as not a security remains unchanged. In the meantime,… https://t.co/edHNbMzYbZ

— Stuart Alderoty (@s_alderoty) June 26, 2025

Ripple will continue to expand its business and stick to its initial mission. The SEC has also ended multiple lawsuits against firms such as Coinbase. Most of the lawsuits started during the tenure of the former SEC chairman, Gary Gensler.

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