Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have mutually agreed to drop all pending appeals, effectively ending their nearly five-year legal battle. This resolution comes after Ripple CEO Brad Garlinghouse announced the company would abandon its cross-appeal, with the SEC expected to follow suit.
The decision marks a definitive conclusion to litigation that began in December 2020, when the SEC accused Ripple of conducting a $1.3 billion unregistered securities offering through its XRP token sales. The case became a landmark legal test for cryptocurrency regulation and drew intense industry scrutiny.
Garlinghouse confirmed the development on social media platform X, stating: “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.” He emphasized Ripple’s renewed focus on building its “Internet of Value” payment network.
Get breakout alerts
Install Coin Push to get profitable crypto trading notifications.
Legal Settlement Details
The resolution follows Judge Analisa Torres’ rejection of a proposed $50 million settlement between the parties just one day prior. The judge had questioned the removal of a permanent injunction against Ripple in that agreement. With the appeals dropped, Ripple will now accept the original civil penalty of $125 million and the injunction will remain in place.
This injunction prohibits Ripple from future violations of securities laws in institutional XRP sales. The company had previously been found to have violated securities laws in institutional sales but not in programmatic sales or other distributions.
Market Reaction and XRP Performance
Following the announcement, XRP recorded a modest 1.4% price increase. Market analysts observed that while the news provided positive sentiment, the muted reaction reflected the market’s anticipation of this outcome after years of legal uncertainty.
The resolution removes a significant regulatory overhang for Ripple, which has continued developing its cross-border payment solutions throughout the litigation. The company recently expanded its services to over 70 countries and partnered with major financial institutions like Bank of America and Santander.
Industry Implications
The case’s conclusion sets important precedents for cryptocurrency regulation. Judge Torres’ original ruling established that programmatic sales of XRP didn’t constitute securities transactions, a distinction that influenced subsequent crypto cases. The final resolution avoids potential appellate review that could have altered this precedent.
Crypto industry advocates view the outcome as a partial victory for regulatory clarity. “This ends a costly legal battle that drained resources from innovation,” commented Blockchain Association CEO Kristin Smith. “While questions remain, the resolution allows companies to operate with greater certainty.”
The SEC’s enforcement strategy against crypto firms continues, with ongoing cases against major exchanges. However, the Ripple settlement suggests potential flexibility in resolving high-profile crypto cases without establishing binding appellate decisions.
Ripple’s legal team indicated the company will now prioritize global expansion and product development. “With this legal burden lifted, we can accelerate adoption of blockchain solutions in international payments,” said Ripple Chief Legal Officer Stuart Alderoty.
Install Coin Push mobile app to get profitable crypto alerts. Coin Push sends timely notifications – so you don’t miss any major market movements.
The resolution represents a significant milestone for cryptocurrency regulation, removing a major legal uncertainty that had persisted since 2020. Market participants expect increased institutional interest in XRP and related technologies now that regulatory risks have diminished.
- Cross-Appeal
- A legal appeal filed in response to an opponent’s appeal, typically seeking to challenge additional aspects of a court decision beyond those addressed in the initial appeal.
- Permanent Injunction
- A court order requiring a party to permanently cease specified activities, often used in securities cases to prevent future violations of regulations.
- Civil Penalty
- A financial penalty imposed by regulatory agencies or courts for violations of laws or regulations, distinct from criminal penalties which may involve imprisonment.
