Ripple Lawsuit News: Ripple and SEC Drop Appeals, Ending Lawsuit Chapter as XRP Reclaims Investor Confidence

The decision, announced on June 28, marks the final act in a nearly five-year legal saga that has had a profound impact on the XRP market and the broader crypto regulatory landscape.

Ripple CEO Brad Garlinghouse confirmed the move on social media, stating, “We’re closing this chapter once and for all and focusing on what’s most important—building the Internet of Value.” This declaration signaled the company’s intent to shift its attention back to product development and ecosystem growth, particularly around the Ripple Ledger and its global payment solutions.

Ripple has announced it is dropping its cross-appeal, with the SEC expected to do the same, officially closing the case and refocusing on advancing the Internet of Value. Source: Brad Garlinghouse via X

The Ripple lawsuit began in December 2020 when the SEC filed charges alleging that the company raised $1.3 billion through the sale of XRP as an unregistered security. Ripple pushed back, asserting that XRP functions as a digital currency and should not be classified as a security.

Judge Analisa Torres partially agreed with both sides in a landmark 2023 ruling, determining that Ripple’s institutional sales of XRP violated securities laws but that XRP sales on secondary exchanges did not. This split verdict laid the groundwork for competing appeals by both Ripple and the SEC—a legal deadlock that has now been abandoned in favor of finality.

Earlier this month, both Ripple and the SEC attempted to resolve the dispute with a post-judgment agreement. They proposed reducing Ripple’s penalty from $125 million to $50 million and lifting the injunction against further institutional XRP sales. However, Judge Torres rejected the joint motion, stating that “the parties do not have the authority to agree not to be bound by a court’s final judgment.”

Judge Torres is no longer involved, as the parties can file voluntary dismissals without court approval, with only a final SEC vote—guaranteed to pass—potentially pending. Source: MetaLawMan via X

The refusal to modify the original ruling led to a pivotal choice: continue fighting or accept the court’s findings. Ripple chose to step back. As Garlinghouse noted, “The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales—or press forward with the appeal.”

The SEC Ripple case is now effectively closed. With no further appeals expected, the legal classification that XRP is not a security when traded on public exchanges is preserved, while Ripple remains liable for institutional sales conducted in violation of securities laws.

Following the news, XRP’s price saw an immediate reaction from investors. The token rose over 4%, trading at $2.20 at the time of writing, as renewed confidence swept through the Ripple market. The end of the lawsuit clears a significant overhang on XRP value, offering a more stable regulatory outlook for current and future investors.

XRP was trading at around $2.19, up 5.01% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Market experts, such as ETFStore President Nate Geraci, suggest that this closure could pave the way for long-awaited financial products. “Closed chapter on this clears way for spot XRP ETF,” Geraci wrote, highlighting that XRP ETFs may now have a clearer path to SEC approval. Bloomberg analysts have placed a 95% probability on approval, with key decisions expected later this year.

With the legal issues behind it, Ripple is preparing to double down on its business strategy. The company is reportedly considering a number of acquisitions and planning to implement Ethereum-like upgrades to the XRP Ledger. The upgrades are expected to build on smart contract functionality, positioning the blockchain to more aggressively compete in the decentralized finance (DeFi) space.

Ondo Finance, a Ripple partner, showcases in its latest commercial how CEO Nathan Allman sees RLUSD on the XRP Ledger revolutionizing institutional finance. Source: John Squire via X

This re-doubling on growth comes in step with Garlinghouse’s personal vision for Ripple as a payments leader across borders and a payment innovator in blockchain. Legal Chief Stuart Alderoty echoed this hope, reasserting that “XRP’s legal status as not a security remains unchanged.”

The dismissal of the XRP SEC lawsuits not only unburdens Ripple—it also sends a message to the broader crypto community. The case was viewed as a bellwether for how U.S. regulators view digital assets. With this chapter closed, industry participants are now able to move with a bit more surety, though broader regulatory uncertainty persists.

Congress continues to struggle with digital asset legislation, and other crypto firms remain battling in their own legal battles. However, the news of the XRP lawsuit provides a roadmap on how disputes going forward can be resolved through judicial finality and not prolonged litigation.

For stakeholders in Ripple and XRP, this is a turning point. With the Ripple crypto business free of the specter of court action and the Ripple exchange applications poised for expansion, attention now turns to what the firm has in store to further its global reach.

As Ripple XRP news continues to emerge, investors and industry watchers alike will be closely watching to observe how the firm leverages its win in court—and whether or not this is the start of a whole new era of institutional adoption for Ripple currency price assets like XRP.