Ripple Labs has officially concluded its lengthy legal battle with the U.S. Securities and Exchange Commission. According to Ripple CEO Brad Garlinghouse, the company has withdrawn its cross appeal, and the SEC is expected to do the same.
This development marks a decisive end to a nearly five-year dispute that began in December 2020. The SEC initially sued Ripple over claims that its XRP token was sold as an unregistered security. Legal proceedings have since influenced how digital assets are viewed in U.S. regulatory frameworks.
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Judge Analisa Torres delivered a pivotal ruling in July 2023 that reshaped the case’s direction. She determined that institutional XRP sales breached securities laws, while programmatic sales on public exchanges did not. This distinction offered Ripple a partial legal win and provided important guidance for the broader crypto market.
Ripple later contested a $125 million civil fine and a permanent injunction on institutional XRP sales. The SEC, meanwhile, considered challenging the court’s stance on public XRP transactions. However, the regulatory agency chose not to proceed with its appeal earlier in 2025.
On June 26, Judge Torres declined Ripple’s attempt to reduce its penalty and lift the injunction. One day later, Garlinghouse confirmed in a post on X that Ripple would end its cross appeal. The SEC is expected to formally end its own appeal, finalizing the litigation.
Ripple Accepts Judgment as It Eyes Market Expansion
By ending the appeal process, both Ripple and the SEC have accepted the court’s 2023 judgment. Ripple will pay the full $125 million fine and remain restricted from conducting institutional XRP sales in the U.S. However, the classification of XRP as a non-security for retail trading remains unchallenged.
This resolution provides Ripple with legal certainty in retail markets. It also lifts a long-standing shadow over XRP, allowing the firm to resume operations without courtroom distractions.
Garlinghouse emphasized Ripple’s renewed focus on its central objective of creating a global value network. The company aims to expand its payment services using XRP to enable real-time and cost-efficient cross-border transactions.
Ripple’s ability to now engage global partners without legal overhang is seen as a key step toward growth. Market participants are likely to interpret the finality of this case as a stabilizing factor for XRP and the digital asset space.
Conclusion
Ripple’s decision to end its legal pursuit, coupled with the SEC’s expected withdrawal, closes a landmark chapter in crypto regulation. The outcome reinforces XRP’s legal status in the U.S. retail market while placing institutional sales under ongoing scrutiny.
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