Ripple, SEC Agree to Mutually Abandon Appeals, Ending 5-Year Legal Battle

He wrote: “We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value.” The decision follows Judge Analisa Torres’ denial of a joint motion for an indicative ruling earlier this week, marking the second time she dismissed the appeal. Ripple’s chief legal officer, Stuart Alderoty, explained that the court’s proffered options were to either dismiss its appeal challenging the prior finding on historic institutional sales of XRP or proceed with the appeal and continue litigation.

The SEC sued Ripple in December 2020, alleging it conducted an unregistered securities offering by selling XRP tokens to institutional investors. In July 2023, Judge Torres ruled that while XRP itself is not a security and secondary market sales do not violate securities laws, Ripple’s direct sales to institutional investors did constitute unregistered securities offerings.

The ruling was considered a landmark split decision, with Ripple securing a major victory for the industry in clarifying that programmatic sales and secondary market trading of XRP do not fall under SEC jurisdiction. However, the finding on institutional sales posed potential financial penalties for Ripple. The SEC initially signaled an intent to appeal the ruling on XRP’s non-security status but later indicated it would drop that appeal. Ripple’s decision to abandon its cross-appeal effectively ends the litigation over the institutional sales ruling, avoiding further legal expenses and uncertainty.