XRP prices jumped over 3% on Friday following an announcement by Ripple CEO Brad Garlinghouse that the company is abandoning its cross-appeal in the long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). The move signals a pivotal shift in Ripple’s strategy and has reignited investor confidence in the cryptocurrency’s future.
Garlinghouse declared that Ripple is “closing this chapter” — a clear reference to the four-year regulatory dispute that began in December 2020 when the SEC filed a lawsuit against Ripple Labs, co-founder Chris Larsen, and Garlinghouse himself. The SEC alleged that Ripple raised $1.3 billion through unregistered securities offerings by selling XRP, violating federal securities laws.
"Ripple is dropping our cross-appeal, and we expect the SEC will drop theirs, as they previously indicated," Garlinghouse posted on X (formerly Twitter).
Within just five hours of the post, XRP surged 3.36% to $2.18, according to CoinMarketCap data. While the token remains down 4.44% over the past 30 days, this recent rally suggests renewed market optimism about regulatory clarity and Ripple’s path forward.
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Ripple Shifts Focus to Building the "Internet of Value"
With the legal battle nearing its conclusion, Ripple is redirecting its energy toward innovation and global expansion.
"We’re closing this chapter and focusing on what matters most — building the Internet of Value. Eyes on the prize," Garlinghouse added.
This strategic pivot underscores Ripple’s intent to move beyond litigation and accelerate development of blockchain-based payment solutions. The company has long positioned XRP as a bridge currency for fast, low-cost cross-border transactions — a vision now regaining traction amid improved regulatory sentiment.
The announcement came one day after a U.S. district court denied a joint motion from both Ripple and the SEC. That motion sought a declaratory judgment to reduce the $125 million civil penalty imposed on Ripple and overturn the court’s earlier ruling classifying Ripple’s institutional sales of XRP as securities transactions under Section 5 of the Securities Act.
Judge Analisa Torres upheld most of the original decision, stating:
"Ultimately, the court partially granted the SEC’s request for injunctive relief and civil penalties because it found 'Ripple’s willingness to push at the boundaries [of the summary judgment order], suggesting it may ultimately, if not already, cross those boundaries.'"
Despite this partial setback, Ripple’s leadership maintains that XRP’s legal standing remains unchanged.
XRP’s Legal Status Remains Intact, Says Ripple CLO
Stuart Alderoty, Ripple’s Chief Legal Officer, emphasized that regardless of procedural developments, XRP continues to function as a non-security in practice.
"The ball is back in our court," Alderoty said. "We have two choices: either withdraw our appeal challenging the institutional sale determination — or proceed with the appeal."
But he quickly reassured stakeholders:
"Either way, XRP’s legal status as a non-security remains unchanged."
He further clarified:
"Meanwhile, business as usual."
This statement reinforces Ripple’s consistent argument throughout the case — that XRP itself is not a security, even if certain sales methods were deemed to fall under securities regulations. The distinction between the asset and its distribution model is central to Ripple’s defense and critical for broader crypto industry precedent.
If the SEC follows through and drops its own appeal, it could mark the official end of one of the most watched crypto regulatory cases in U.S. history. Such an outcome would likely boost institutional interest in XRP and set a clearer framework for how digital assets are classified under American law.
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Why This Moment Matters for Crypto Regulation
The Ripple vs. SEC case has been a bellwether for the entire cryptocurrency industry. Its resolution — or de-escalation — carries implications far beyond XRP.
Key takeaways include:
- Clarity on token classification: Courts have distinguished between how a digital asset is sold and what it inherently is.
- Precedent for institutional sales: While private placements may be regulated as securities, public trading does not automatically make a token a security.
- Regulatory fatigue: Prolonged litigation may push both companies and regulators toward negotiated resolutions rather than prolonged courtroom battles.
In August 2024, Garlinghouse described Judge Torres’ $125 million penalty as a “win” for Ripple — especially compared to the SEC’s initial push for $2 billion in damages. That 94% reduction was seen as a major concession and signaled weakening enforcement pressure.
Now, with both sides stepping back from appeals, the market interprets this as a de facto acknowledgment that further legal action may yield diminishing returns.
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Frequently Asked Questions (FAQ)
Q: What does Ripple dropping its cross-appeal mean?
A: It means Ripple is no longer challenging specific parts of the court’s ruling — particularly around institutional sales — signaling readiness to close the legal chapter and focus on business growth.
Q: Does this mean XRP is officially not a security?
A: While courts haven’t issued a blanket declaration, the consistent treatment of XRP in public markets and Ripple’s arguments have established strong precedent that XRP is not inherently a security.
Q: Will the SEC drop its appeal too?
A: Ripple expects the SEC will follow suit based on prior statements, but until officially confirmed, there remains some uncertainty. However, market reaction suggests confidence in an impending resolution.
Q: How will this affect XRP’s price long-term?
A: Reduced legal risk typically boosts investor confidence. If regulatory clarity solidifies, institutional adoption and liquidity could increase, supporting upward price momentum.
Q: Can Ripple now expand operations in the U.S.?
A: Yes — with fewer legal constraints, Ripple may resume broader partnerships with financial institutions and payment providers in the U.S., accelerating use of XRP in real-world applications.
Q: What's next for Ripple after this legal battle?
A: The company plans to double down on its mission to build the “Internet of Value,” leveraging blockchain technology to transform global payments through faster settlement, lower costs, and greater financial inclusion.
As the dust settles on one of crypto’s longest-running legal sagas, all eyes are on what comes next — not just for XRP, but for the entire digital asset ecosystem navigating an evolving regulatory landscape.