Ripple CEO Brad Garlinghouse has confirmed that the company is dropping its cross-appeal against the US Securities and Exchange Commission (SEC).
Ripple Drops Cross-Appeal as Legal Battle Nears End
In a post on X, Garlinghouse stated, “Ripple is dropping our cross-appeal, and the SEC is expected to drop theirs too.” Just five hours after the announcement, XRP climbed 4% to $2.18, according to CoinMarketCap.
Garlinghouse added that Ripple is now ready to “close this chapter once and for all” and focus on building the “Internet of Value.”
The announcement comes after a US district court denied a joint request from Ripple and the SEC to reduce a $125 million fine and reverse an earlier ruling that labeled XRP sales to institutional investors as illegal securities transactions.
Judge Analisa Torres said the penalty stands, adding that Ripple’s actions showed a “willingness to push the boundaries” of the court’s earlier order, suggesting possible future violations.
Despite the positive news, XRP remains down about 4.4% over the last 30 days.
Ripple Lawyer Says XRP’s Legal Status is Still The Same
Ripple’s top lawyer, Stuart Alderoty, has confirmed that XRP’s legal status remains unchanged, despite the latest court decision.
“The ball is back in our court,” Alderoty said, explaining that Ripple now has two choices, either drop its appeal against the ruling on past XRP sales to institutional investors or continue pursuing the appeal.
“Regardless of the decision, XRP’s legal status as not a security stays the same,” he added. “In the meantime, it’s business as usual.”
If the SEC also withdraws its appeal, it could finally bring an end to the long-running legal battle between Ripple and the US regulator, which has lasted over four years.
The SEC first took Ripple, co-founder Chris Larsen, and CEO Brad Garlinghouse to court in December 2020, accusing them of raising $1.3 billion by selling XRP without proper registration.
In August 2024, Garlinghouse welcomed the court’s $125 million fine, calling it a “victory” for Ripple, as it was a sharp 94% cut from the SEC’s initial $2 billion penalty proposal.
