Ripple Ends Legal Battle as SEC Drop Anticipated

On Friday, XRP’s price increased by over 3% shortly after Ripple CEO Brad Garlinghouse announced that the company would be dropping its cross-appeal against the U.S. Securities and Exchange Commission (SEC). He stated that Ripple is "closing this chapter once and for all" and expects the SEC to do the same. Following this announcement, XRP’s value rose by approximately 3.36%, reaching $2.18 within five hours. Garlinghouse emphasized that the company is returning to normal operations and focusing on its main goal of developing the internet of Value.

This development occurred a day after a U.S. district court rejected a joint motion from the SEC and Ripple to lower a $125 million civil penalty and to reverse a ruling that classified XRP sales to institutional investors as securities transactions under the Securities Act. The court partially granted the SEC’s request for an injunction and civil penalty, citing Ripple’s behavior as a sign that it might eventually cross legal boundaries.

Ripple’s legal team stated that XRP’s status as a non-security remains unchanged, and the company is considering its legal options, including whether to dismiss or continue its appeal. If the SEC also decides to drop its appeal, it could mark the end of a legal battle that has lasted over four years.

The lawsuit was initially filed by the SEC in December 2020, claiming Ripple raised $1.3 billion through unregistered XRP sales. Garlinghouse described the recent court decision to fine Ripple $125 million as a partial victory, noting it was a significant reduction from the SEC’s original demand of $2 billion.