Breaking: SEC Backs Down? The Stunning Twist in the Ripple Lawsuit Appeal

The Securities and Exchange Commission just folded its cards—or did it? After years of legal wrangling, the SEC’s sudden withdrawal of its appeal against Ripple has sent shockwaves through crypto. Here’s what you need to know.

The Goliath vs. David Saga Takes a Turn

No one saw this coming. The regulator that once vowed to 'protect investors' from XRP’s 'unregistered security' status has quietly retreated—leaving Ripple’s legal team and the crypto community scrambling to decode the move. Was it exhaustion? Strategy? Or just another bureaucratic blunder in Washington’s war on crypto?

A Win for Ripple—But Don’t Pop Champagne Yet

Ripple’s partial victory in 2023 already set a precedent: XRP isn’t a security when sold to retail. Now, with the appeal dropped, the case’s momentum swings further in Ripple’s favor. But let’s not pretend the SEC is done—this is the same agency that spends more on lawsuits than actual market surveillance.

Crypto’s Regulatory Rollercoaster Isn’t Over

One case won’t fix the SEC’s obsession with regulation-by-enforcement. But for now, Ripple’s breather is a bullish signal for the industry. Just remember: in finance, the house always finds another way to stack the deck.

There’s been some confusion in the crypto world about whether the U.S. Securities and Exchange Commission (SEC) dropped its appeal against Ripple in March 2025. Let’s clear things up.

In a video from March, called crypto in a Minute, Ripple’s Chief Legal Officer, Stuart Alderoty, spoke about the case. He said, “I feel good,” as he reflected on the years of legal battles condensed into 60 seconds.

Alderoty claimed that not only did the SEC drop its appeal against Ripple, but it also dropped all its enforcement actions against crypto companies in the U.S. He explained that the SEC finally admitted what Ripple and others had argued for years,  that you can’t enforce laws without first clearly defining them.

“We never had clear laws or regulations for crypto in this country,” Alderoty said. “Now, we’re going to clean up the mess, leave the courtrooms behind, and work with Congress to build smart rules that protect consumers and allow innovation to grow.”

But Here’s What a Former SEC Lawyer Says

However, former SEC attorney James Farrell shared a different view on social media. He wrote, “The SEC still has not dropped its appeal. Both parties’ appeals are still alive (although stayed) today..”

What’s Really Happening?

To be clear, while the SEC’s appeal has been stayed (put on hold), it hasn’t been officially withdrawn. Both Ripple and the SEC still have active appeals in court.

The case isn’t over yet, but there’s growing hope that clearer crypto rules will soon be created in the U.S. Ripple’s legal team is staying involved in those conversations, aiming to help shape fair regulations for the industry.