Ripple Drops Cross-Appeal in SEC Case, XRP Rallies 3%
Ripple signals the end of its four-year legal clash with the SEC as XRP climbs 3.36% following the announcement.
Garlinghouse Declares Legal Chapter Closed
XRP surged over 3% on Friday, trading at $2.18, after Ripple CEO Brad Garlinghouse confirmed the firm is withdrawing its cross-appeal against the U.S. Securities and Exchange Commission (SEC). The move brings Ripple closer to concluding the high-stakes legal fight that began in December 2020.
“Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said,” Garlinghouse wrote on X. “We’re closing this chapter once and for all and focusing on what’s most important — building the internet of value.”
XRP is down 4.44% over the past 30 days. Source: CoinMarketCap
Legal Setback Did Not Shake Confidence
Just one day before Garlinghouse’s announcement, U.S. District Judge Analisa Torres denied a joint request from Ripple and the SEC to reconsider a $125 million civil penalty tied to Ripple’s institutional XRP sales. The court reaffirmed that Ripple’s actions may have already crossed legal boundaries, referencing the Summary Judgment Order.
“None of this has changed — and the parties hardly pretend that it has,” Judge Torres said in her ruling.
Ripple’s Legal Strategy Shifts
Despite the court’s refusal to reduce the penalty, Ripple Chief Legal Officer Stuart Alderoty stated that the company remains undeterred.
“The Court gave us two options: dismiss our appeal or press forward. We chose the former,” said Alderoty. “XRP’s legal status as not a security remains unchanged. In the meantime, it’s business as usual.”
Ripple’s Long Legal Road Nears Resolution
The SEC’s original lawsuit accused Ripple, Garlinghouse, and co-founder Chris Larsen of raising $1.3 billion through unregistered XRP sales. The recent developments could signal a final resolution in the four-year legal saga that’s shaped U.S. crypto regulatory debate.
Though Ripple was fined $125 million, Garlinghouse in 2024 had already labeled the penalty “a victory,” noting it represented a 94% reduction from the SEC’s original $2 billion demand.
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