Ripple Drops Bombshell: Cross-Appeal Against SEC Scrapped – XRP Lawsuit Nears Finale

Ripple just pulled the plug on its legal counterattack against the SEC—clearing the runway for a potential endgame in the three-year XRP courtroom saga.

The move signals either strategic surrender or a backroom deal in the making. Either way, Wall Street's least favorite cryptocurrency just dodged another bullet from the regulation-happy suits.

Funny how these 'existential threats' to crypto always seem to resolve right before executives need to sell their tokens.

Ripple to Drop SEC Cross Appeal Soon

Garlinghouse made the announcement on X, stating: “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. Lock in.”

The development follows a decisive court ruling on Thursday, June 26, when U.S. District Judge Analisa Torres dismissed the SEC’s request. The motion sought to reduce sanctions previously levied against Ripple and to lift an injunction requiring future compliance with securities laws.

In its motion, the SEC had requested two key changes: first, that the court remove the permanent injunction mandating Ripple’s adherence to federal securities law. Second, that the financial penalties imposed on the firm be significantly reduced by more than 50%. Judge Torres denied the request in a brief but direct order, writing simply: “The request is DENIED.”

The ongoing litigation, initiated by the SEC in December 2020, has centered on Ripple’s sale of XRP. Regulators accused the blockchain company of offering XRP as an unregistered security, thereby violating U.S. securities law. At the time, the SEC claimed that the absence of registration deprived potential investors of critical disclosures related to XRP and Ripple’s operations.

According to court filings, the commission maintained that investors “were deprived of information about XRP and Ripple’s business that WOULD allow them to make informed investment decisions.”

After nearly three years of legal wrangling, Judge Torres issued a partial summary judgment in July 2023. That ruling determined Ripple’s sales of XRP to institutional clients qualified as unregistered securities transactions. However, sales made to the general public through exchanges were not treated as such, creating a nuanced legal outcome.

In March 2024, the SEC pushed for a final judgment, urging the court to permanently block Ripple from any future securities law violations and to impose a substantial monetary penalty. With Ripple now confirming it will withdraw its cross appeal and the SEC anticipated to do the same, the legal dispute appears to be nearing its end.