Ripple Ends Legal Dispute Chapter With SEC After Four Years
XRP surged over 3% on Friday after Ripple CEO Brad Garlinghouse announced the company is dropping its cross-appeal in the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Ripple expects the SEC to follow suit, potentially bringing an end to a high-profile lawsuit that began in December 2020.
“Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said,” said Garlinghouse in an official statement on X.
Shortly after the announcement, XRP spiked 3.36%, reaching $2.18, according to CoinMarketCap data.
Ripple to Refocus on Building ‘Internet of Value’
Garlinghouse emphasized that Ripple is closing this chapter for good, stating:
“We’re closing this chapter once and for all and focusing on what’s most important – building the internet of value.”
This shift in focus signals that Ripple is moving beyond regulatory setbacks and returning to its mission of developing blockchain-based payment solutions.
Court Denies Motion to Reduce Penalty — But XRP’s Status Unchanged
The announcement follows a U.S. District Court ruling denying a joint motion by Ripple and the SEC that sought to reduce a $125 million civil penalty. The court upheld its previous conclusion that Ripple’s institutional sales of XRP violated Section 5 of the Securities Act.
Judge Analisa Torres stated:
“Ripple’s willingness to push the boundaries of the order evinces a likelihood that it will eventually, if it has not already, cross the line.”
Despite this, XRP’s legal classification remains intact. Ripple’s Chief Legal Officer, Stuart Alderoty, clarified:
“Either way, XRP’s legal status as not a security remains unchanged. In the meantime, it’s business as usual.”
Ripple Lawsuit Timeline and Final Thoughts
The SEC first sued Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen in 2020, alleging the unregistered sale of $1.3 billion worth of XRP. Although the court previously ruled XRP is not a security when sold to retail investors, it considered institutional sales to be securities transactions.
Garlinghouse previously noted that the $125M penalty was a 94% reduction from the SEC’s original $2 billion demand — calling the outcome a partial victory for Ripple.
Conclusion: XRP Eyes Growth After Legal Clarity
With both sides expected to drop their remaining appeals, Ripple appears ready to leave legal uncertainty behind. As XRP gains momentum and Ripple returns to full operations, investors are watching for continued upward price action and renewed adoption of the XRP Ledger.
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.