After nearly four years of intense legal scrutiny, Ripple Labs has taken a decisive step toward closing the chapter on its high-stakes battle with the U.S. Securities and Exchange Commission (SEC). By withdrawing its cross-appeal, the company signals that it no longer intends to prolong the courtroom fight—though the final gavel hasn’t yet fallen. This move brings cautious optimism to XRP holders and the broader cryptocurrency community, but important questions remain.
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A Long Road to Legal Clarity
In December 2020, the SEC filed a lawsuit against Ripple Labs, alleging that the company raised $1.3 billion through the unregistered sale of XRP, classifying it as a security. The case quickly became one of the most consequential in crypto history, with implications reaching far beyond a single token.
The turning point came in July 2023, when Judge Analisa Torres delivered a landmark partial ruling: programmatic sales of XRP on public exchanges do not constitute securities offerings. This was a major win for Ripple and set a precedent that could influence how other digital assets are regulated.
However, the court also found Ripple liable for $728 million in institutional sales, which were deemed unregistered securities transactions. This dual outcome created a nuanced legal landscape—XRP itself wasn't declared a security, but certain methods of distribution were.
Ripple Chooses Closure Over Continued Litigation
Faced with the choice of pursuing further appeals or stepping back, Ripple chose the latter. CEO Brad Garlinghouse confirmed the decision on social media, stating, “We’re closing this chapter once and for all.” The company’s chief legal officer, Stuart Alderoty, emphasized that this move does not alter XRP’s fundamental legal standing: XRP is not a security.
While Ripple has withdrawn its appeal, the SEC has not yet formally dropped its own. However, legal experts expect it to follow suit, especially given recent signals of regulatory compromise. If both sides abandon their appeals, the 2023 ruling will stand as the final word—without the need for a new settlement agreement.
Fred Rispoli, a seasoned crypto attorney, suggests the SEC may provide Ripple with either a public or private assurance allowing it to operate without further enforcement actions—essentially an unofficial green light. As long as Ripple complies with current regulations, particularly around institutional offerings, it can proceed with business as usual.
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Why Experts Are Still Cautious
Despite growing optimism, some legal experts urge restraint. Former SEC lawyer Marc Fagel warned that the case is not legally over until the SEC officially drops its appeal. While the commission voted to approve a proposed settlement, that internal decision doesn’t automatically translate into formal dismissal.
This distinction matters. Without an official termination, there remains a slim possibility—however unlikely—that the SEC could revive enforcement efforts. As a result, XRP attorney Bill Morgan revised his earlier claim that the lawsuit was “finally over,” acknowledging that procedural steps still linger.
Still, the momentum is clearly shifting toward resolution. The withdrawal of Ripple’s appeal removes one of the last major roadblocks. If the SEC follows through, it would mark the end of one of crypto’s longest-running regulatory sagas.
Ripple’s Victory: No Admission of Fault
A common misconception is that settling—or choosing not to appeal—implies guilt. In reality, most legal settlements in the U.S. involve no admission of wrongdoing, and this case is no different. Ripple has consistently maintained that XRP is a decentralized digital asset, akin to Bitcoin or Ethereum in function and classification.
The 2023 ruling reinforced this view by distinguishing between the nature of a token and how it’s sold. Judge Torres found that while institutional sales required registration, open-market transactions did not meet the criteria of an investment contract under the Howey Test. This supports the argument that XRP functions more like a commodity than a security.
This precedent could have ripple effects (pun intended) across the industry, offering a framework for other projects navigating SEC scrutiny. It suggests that distribution method matters more than token design alone when determining regulatory status.
What This Means for XRP Investors
For holders of XRP, the path forward looks brighter—but not without volatility. With reduced regulatory uncertainty, many analysts expect upward pressure on price.
Some forecasts suggest XRP could reach $3 to $4 in the near term, driven by renewed exchange listings and institutional interest. More bullish projections point to $8–$15 by 2025, especially if spot XRP ETFs gain traction—a possibility now more plausible than ever.
Beyond price, the real win is market legitimacy. Clearer rules mean greater confidence from investors, developers, and financial institutions. Ripple can now focus on expanding its cross-border payment solutions without the shadow of litigation.
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Frequently Asked Questions (FAQs)
Is Ripple going to settle with the SEC?
Ripple and the SEC proposed a joint settlement, but it was rejected by Judge Torres. The original $125 million penalty remains in place. However, Ripple has withdrawn its cross-appeal, and the SEC is expected to drop its appeal soon—effectively ending the case without a new formal settlement.
How much will XRP be worth after the lawsuit?
Price predictions vary, but sentiment is largely bullish. Analysts project $3–$4 in the short term, with potential for $8–$15 or higher by 2025 if regulatory conditions continue to improve and spot ETF discussions gain momentum.
Has Ripple won a major case against the SEC?
Yes. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP on exchanges are not securities transactions—a landmark decision affirming XRP’s status as a non-security in retail markets.
Does this mean XRP is officially legal in the U.S.?
While not an official “green light” from Congress, the court ruling provides strong legal precedent. As long as Ripple complies with securities laws in institutional sales, XRP can be traded freely on U.S. platforms without violating federal law.
Could the SEC reopen the case in the future?
Technically possible but highly unlikely. Once both appeals are dropped, the case will be considered closed. Future enforcement would require new evidence or violations, not a re-litigation of past events.
What’s next for Ripple’s business operations?
With legal distractions fading, Ripple is poised to expand its On-Demand Liquidity (ODL) services and partner with more banks and payment providers globally. Regulatory clarity strengthens its position in the cross-border payments market.
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The resolution of Ripple’s battle with the SEC marks more than just a corporate victory—it’s a milestone for crypto as an asset class. As courts and regulators begin drawing clearer lines, investors gain confidence, innovation accelerates, and markets mature. The journey isn’t over, but for XRP, freedom may finally be within reach.