After nearly five years of litigation, Ripple moves to end its court battle with the SEC—here’s what it means for XRP and the broader crypto industry.
In a significant development for the crypto world, Ripple Labs has officially decided to drop its cross-appeal in its long-running legal battle with the U.S. Securities and Exchange Commission (SEC). The decision, announced by Ripple CEO Brad Garlinghouse on June 28, 2025, effectively brings an end to a nearly five-year court saga that has loomed over XRP and the crypto markets.
What Happened?
Ripple’s decision follows a rejection by U.S. District Judge Analisa Torres of a second proposed settlement between Ripple and the SEC. That deal would have cut Ripple’s civil penalty to $50 million and removed a permanent injunction that restricts Ripple’s ability to sell XRP to institutional investors.
Judge Torres refused the proposal, questioning why Ripple should be released from a legal injunction designed to prevent future violations.
“If the Court should not be concerned about Ripple violating the law, why do the parties want to eliminate the injunction?” she wrote.
With the court unwilling to modify the original terms, Ripple will now accept the initial penalty of $125 million and allow the permanent injunction to remain in place.
Ripple’s Official Statement
Garlinghouse made the announcement in a post on X (formerly Twitter), writing:
“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, and focusing on what’s most important – building the Internet of Value.”
Market Reaction
Following the news, XRP rose 1.4%, reflecting cautious optimism from investors who see the conclusion of the case as a long-awaited turning point for Ripple and the token’s ecosystem.
Why It Matters
This case has been one of the most closely-watched legal battles in crypto history. Originally filed in December 2020, the SEC accused Ripple of conducting unregistered securities offerings through its XRP token sales. The case partly centered around whether XRP qualifies as a security under U.S. law.
In 2023, Judge Torres ruled that while XRP sales to retail investors on public exchanges were not securities transactions, sales to institutional investors were — handing both sides a partial win.
What Does the Injunction Mean?
The permanent injunction now left in place prevents Ripple from continuing certain types of institutional XRP sales without complying with securities laws. While it doesn’t affect retail exchange sales, it limits Ripple’s flexibility in fundraising and token distribution to large investors.
What’s Next for Ripple and XRP?
With the legal cloud finally lifting, Ripple says it is refocusing on its core mission: building global payment infrastructure and expanding XRP adoption. However, the permanent injunction may still pose regulatory constraints going forward, especially in the U.S. institutional market.
Still, many in the crypto industry are welcoming the closure, seeing it as a positive signal for clarity and finality in crypto regulation — even if the full victory Ripple hoped for never materialized.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.