Ripple will drop its cross-appeal in its prolonged legal battle with the U.S. Securities and Exchange Commission, signaling an end to one of the crypto industry’s most consequential court cases.Ripple CEO Brad Garlinghouse announced the move on social media on June 27 and also revealed that the SEC is expected to drop its appeal as well.
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.
The outcome preserves XRP’s legal clarity in the U.S. market while finalizing the company’s settlement exposure. Ripple is expected to pay a civil penalty related to institutional sales, though the final amount is yet to be determined. With both appeals set to be withdrawn, the case closes a chapter that has defined crypto’s regulatory landscape for nearly five years. Ripple now plans to shift its focus back to expanding global payment corridors, token utility, and adoption of its XRP Ledger as it advances its vision for an Internet of Value.
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