Ripple to Drop Cross-Appeal Against US SEC in Cryptocurrency Lawsuit, CEO Confirms
June 27, 2025
In a significant development in the protracted legal battle between Ripple Labs Inc and the U.S. Securities and Exchange Commission (SEC), Ripple’s CEO Brad Garlinghouse announced on Friday that the company will withdraw its cross-appeal against the SEC. The announcement was made via a post on X, formerly known as Twitter, where Garlinghouse stated, “We’re closing this chapter once and for all.” He also indicated that the SEC is expected to drop its own appeal, paving the way for a potential resolution to the dispute.
Background of the Legal Battle
The lawsuit, which has been ongoing for several years, centers around the SEC’s allegations that Ripple violated securities laws through the sale of its XRP tokens. In 2023, a federal judge ruled that XRP sales on public exchanges were legal. However, the court found that approximately $728 million worth of XRP sales made to institutional investors breached securities regulations.
Following that decision, both Ripple and the SEC filed appeals. The legal wrangling has since continued as both parties sought to challenge various aspects of the ruling. The ongoing uncertainty has had a notable impact on the cryptocurrency market and XRP’s position within it.
Attempts at Settlement and Recent Court Proceedings
Earlier efforts to settle the dispute were made when Ripple and the SEC agreed in principle to a deal, which would see the judge lift her injunction on some sales activities and reduce a $125 million fine imposed on Ripple. Nevertheless, the judge recently rejected this settlement proposal, prolonging the legal process.
Despite this setback, Ripple’s CEO expressed optimism about the company’s decision to halt the cross-appeal, interpreting the move as a step toward conclusively resolving the matter. The SEC has not publicly commented on the situation following Garlinghouse’s statement.
Industry Implications
The Ripple-SEC lawsuit has been closely watched by the crypto industry as it holds significant implications for how digital assets are regulated in the United States. Many have viewed the case as a test of when and how cryptocurrencies should be classified as securities, affecting compliance requirements for crypto firms nationwide.
By choosing to withdraw its cross-appeal and signaling an end to the protracted appeals process, Ripple may be seeking to provide greater legal clarity and stability for the cryptocurrency ecosystem. This could potentially encourage further innovation and investment in the space.
Reporting by Niket Nishant in Bengaluru; edited by Alan Barona and Shinjini Ganguli.