Ripple drops cross-appeal against SEC, ending 4-year XRP lawsuit, as Brad Garlinghouse confirms both sides halt appeals to close case.
The legal dispute over XRP, initiated in December 2020, is approaching its end in a significant development. Ripple has announced it will withdraw its cross-appeal against the U.S. Securities and Exchange Commission (SEC), with the SEC expected to reciprocate by dropping its appeal against the cryptocurrency company.
XRP Lawsuit Nears Conclusion as Ripple and SEC Abandon Appeals
In a post on X, Ripple CEO Brad Garlinghouse stated that the company is moving to close this chapter definitively to focus on creating the Internet of Value. This decision follows Judge Analisa Torres’ rejection of a joint motion for an indicative ruling in the XRP lawsuit just one day prior. Judge Torres had advised both parties that they could end the litigation by withdrawing their appeals, and both Ripple and the SEC have now opted for this path instead of pursuing further appeals.
As previously reported, legal analyst Fred Rispoli had anticipated that Ripple and the SEC would forgo their appeals rather than contest Judge Torres’ ruling on the injunction in appellate court. With this decision, the injunction will remain intact. However, both parties have agreed to reduce the penalty from the $125 million ordered by Judge Torres to $50 million, effectively concluding the legal battle that began over four years ago.
Background of the XRP Lawsuit
The lawsuit reached a key milestone last year when Judge Torres ruled that Ripple had violated securities laws through its institutional sales of XRP, imposing a $125 million fine.
However, she previously determined that XRP itself does not qualify as a security. The SEC, led by Gary Gensler, appealed the ruling, seeking a higher penalty, while Ripple filed a cross-appeal to challenge the injunction and request a reduced fine.
Following Donald Trump’s inauguration, the SEC adopted a more conciliatory stance toward the cryptocurrency industry, leading to a settlement with Ripple. The agreement stipulated that the SEC would accept $50 million of the penalty, and the agency also requested that Judge Torres lift the injunction. However, Judge Torres rejected the settlement motion twice—first due to a procedural issue and later for failing to demonstrate exceptional circumstances.
Rather than continuing the appeals to challenge Judge Torres’ ruling, Ripple and the SEC have chosen to resolve the XRP lawsuit. After this announcement, XRP’s price surged to $2.149.
According to CoinMarketCap, XRP has risen nearly 2% in the past hour and has gained over the last 24 hours, rebounding from an intraday low of $2.07.
