Ripple vs SEC Showdown: Final Judgment Looms as Crypto Industry Holds Its Breath

The courtroom drama that's haunted crypto for half a decade may finally be reaching its climax.

Ripple's billion-dollar legal war with the SEC enters endgame this week—and the entire digital asset space is watching. Whatever the verdict, Wall Street's compliance drones will still find a way to charge 2% management fees for tokenized versions of these court documents.

Ripple and SEC legal saga is nearing end

Ripple’s decision to withdraw its cross-appeal follows months of fierce negotiations and a blizzard of court filings over the past year.

The court had ruled in July of 2023 in a split decision that while Ripple’s institutional sales of XRP violated securities laws, the company’s programmatic sales (sales on exchanges) did not. In her written opinion, Judge Torres also said that XRP is not a security, delivering a partial victory to Ripple.

However, the SEC’s rattling against the crypto industry cooled after political power in the country shifted following Donald Trump’s re-election to the Oval Office in 2024. In a warmer environment in crypto, the commission restarted discussions with Ripple about settling the case.

The SEC also said it would ask the court to lift the freeze on Ripple’s ability to engage in such transactions.

But Judge Torres rejected the revised settlement twice anyway — first over its procedural deficiencies, then because she believed that the parties had not proved significant “exceptional circumstances” that would merit straying from the norm. Rather than pushing on, Ripple and the SEC allowed things to settle.

XRP price pumps on legal resolution

The crypto community reacted enthusiastically as news of the XRP lawsuit nearing its conclusion sparked a strong rally in the token’s price.

With the SEC now using more measured language, some analysts see this as a positive indication that future regulatory actions may be less aggressive and more balanced.

Legal analysts hailed the exit plan as a savvy and dignified solution to one of the most closely watched crypto cases in recent years.

Ripple executives emphasized that their attention is now firmly on the road ahead. Garlinghouse reaffirmed the company’s commitment to building the Internet of Value and turning that vision into reality.

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