After years of legal sparring, Rippleās recent decision to formally withdraw its cross-appeal has shifted all eyes to July 3, the deadline for the SEC to announce whether it will move forward with its own appeal or bring the case to an end.
The lawsuit has already made history, with Judge Analisa Torres issuing a groundbreaking ruling in July 2023 that declared XRP is not a security when traded on public exchanges but is a security when sold directly to institutional buyers.
That split decision left both sides dissatisfied, prompting Ripple and the SEC to file cross-appeals challenging different aspects of the ruling. Ripple sought to overturn the finding on institutional sales, while the SEC aimed to reverse the courtās determination that XRPās secondary market sales fell outside securities laws.
Meanwhile, the XRP community remains on edge, with prominent voices such as Captain Redbeard underscoring the sense of anticipation across social media. In a recent post, he captured the prevailing sentiment, noting that July 3 isnāt just another date, but rather, itās a day that could change everything for XRP.
šØ July 3 ā the moment of truth.
Ripple dropped its appeal. The SECās next move could end it all.
If they follow through, $XRP isnāt just ready ā itās about to rip.
Game-changing clarity is within reach. š„ pic.twitter.com/GgwfK1nVZPā Captain Redbeard š§āāļø (@Brett_Crypto_X) June 28, 2025
Rippleās Exit Puts Pressure Squarely on SECās Next Move
Rippleās announcement on June 27 that it would drop its cross-appeal has effectively cleared the field, placing the SEC in the spotlight. Ripple CEO Brad Garlinghouse confirmed the withdrawal, adding that he expects the SEC to follow suit, a move that would leave Judge Torresā key ruling intact and settle XRPās status in public markets.
Legal observers say the SECās decision, expected by July 3, could define the next chapter for crypto regulation in the United States. However, should the SEC proceed with its appeal, it could prolong the case for months or even years, keeping XRPās status in limbo.
Whatās at Stake Beyond Ripple
Beyond XRP holders and Rippleās business prospects, the stakes are enormous for the broader crypto industry.
Crypto law expert John Deaton has argued that the Ripple case, particularly Judge Torresā distinction between institutional and programmatic sales, is one of the most significant legal interpretations yet issued on digital assets.
If allowed to stand unchallenged, it could drastically limit the SECās ability to pursue similar actions against other tokens sold on exchanges, potentially signaling a shift in the agencyās enforcement strategy.
A decision by the SEC to abandon its appeal might also reflect a broader softening of the agencyās approach after recent court defeats, including its loss to Grayscale Investments last year, which forced the SEC to allow spot Bitcoin ETFs to launch, a development that has since unleashed a flood of institutional capital into the crypto market.
Rippleās Future Hinges on Regulatory Certainty
For Ripple, a clean resolution would clear the path to focus squarely on expanding its cross-border payment solutions, onboarding new banking partners, and building out its enterprise blockchain ecosystem without the specter of further litigation in the U.S.
Analysts believe this could unlock pent-up demand for XRP-based liquidity services, especially as global remittance providers increasingly explore blockchain rails for faster and cheaper transfers. Ultimately, investors, developers, and policymakers alike are watching closely as the countdown to July 3 begins.
