Ripple Labs has officially dropped its cross-appeal in the high-profile legal battle with the U.S. Securities and Exchange Commission, effectively bringing one of the longest and most closely watched lawsuits in crypto history to a definitive close.
The move confirms that Ripple will not contest the 2023 court ruling that deemed its institutional sales of XRP to be securities transactions. The SEC is now widely expected to reciprocate by withdrawing its own appeal, closing the case without further litigation and setting a landmark precedent for the legal treatment of digital assets in the United States.
Ripple CEO Brad Garlinghouse confirmed the decision in a statement on June 27, following a federal court order the day prior that denied the parties’ request to alter the injunction or reduce Ripple’s financial penalty. With no remaining legal avenues open and limited room for compromise, the company has opted to accept the court’s existing judgment.
Ripple’s decision to withdraw its appeal means it will abide by the original ruling issued by Judge Analisa Torres in July 2023, which delivered a split decision on the classification of XRP sales.
Under that judgment:
- XRP sold on public exchanges was deemed not to be a security, providing legal clarity for retail trading in the U.S.
- XRP sold directly to institutional investors was classified as an unregistered securities offering, placing those transactions in violation of U.S. securities laws.
As a result, Ripple will remain barred from making unregistered institutional sales of XRP and will pay a civil penalty of $102.6 million, likely to be finalized when the SEC completes its expected withdrawal of its own appeal. The resolution effectively ends all courtroom proceedings that began in December 2020, when the SEC filed suit alleging Ripple had raised over $1.3 billion in an unregistered securities offering.
Judge Torres Rejects Injunction Modifications, Paves Way for Closure
Ripple’s strategic decision follows a key ruling by Judge Torres on June 26, in which she rejected a request by both Ripple and the SEC to modify the scope of the injunction and reduce Ripple’s monetary liability. The denial closed the door on a negotiated end to the legal battle, leaving both sides with two options: proceed with lengthy appeals or accept the court’s judgment. Ripple chose the latter.
Garlinghouse emphasized that the company is prepared to move forward, noting that the clarity gained for XRP’s use on secondary markets - such as crypto exchanges - is sufficient for Ripple’s business goals. “This chapter is closed,” Garlinghouse said. “What matters now is building the future of crypto utility, and the markets finally have regulatory clarity for XRP in the U.S.”
Perhaps the most significant and lasting element of the court’s 2023 ruling is the distinction it drew between institutional sales and programmatic sales on public exchanges.
The court determined that Ripple’s automated sales of XRP via exchanges did not meet the legal definition of securities transactions, largely because retail buyers had no reasonable expectation of profit specifically from Ripple’s efforts. That decision sent shockwaves across the industry and provided immediate legal relief for centralized exchanges that had delisted XRP in the wake of the original lawsuit.
Thanks to that ruling:
- U.S.-based exchanges like Coinbase, Kraken, and Bitstamp have relisted XRP.
- Retail investors can buy and sell XRP without legal uncertainty.
The ruling serves as case law precedent, offering guidance in future regulatory actions and court cases involving token sales and securities definitions. However, Ripple must continue to avoid institutional offerings that would be classified under the Howey Test as securities sales unless registered with the SEC.
Four-Year Legal Battle Shaped U.S. Crypto Policy
The SEC v. Ripple case is widely viewed as a foundational legal battle in the broader effort to define digital assets under U.S. law. Filed in December 2020, it was one of the first major enforcement actions against a well-funded and high-profile blockchain firm.
Throughout the multi-year proceedings:
- The case drew global attention as a referendum on how far U.S. securities laws apply to digital tokens.
- It exposed internal SEC disagreements, with former officials and legal scholars weighing in on the implications of labeling cryptocurrencies as securities.
- It helped accelerate congressional efforts to draft crypto-specific regulatory frameworks, such as the Financial Innovation and Technology for the 21st Century Act (FIT21) and its successors.
Legal experts say that Judge Torres’ mixed ruling has already reshaped the enforcement landscape. It rejected the SEC’s attempt to categorize all token sales as securities offerings - a position the agency has taken in several other lawsuits, including those involving Coinbase, Binance, and Terraform Labs.
By drawing a clear line between institutional and public exchange sales, the case provides the most comprehensive judicial interpretation yet of how the Howey Test - a key measure used to identify securities - applies to crypto assets.
XRP Price Reacts Modestly, Market Focus Turns to Ripple’s Roadmap
Despite the news, XRP’s price saw only modest fluctuations following the appeal withdrawal. At the time of publication, XRP is trading around $0.54, with a 24-hour gain of roughly 1.2%. The muted market reaction suggests that traders had largely priced in the legal resolution after Judge Torres' key rulings last year.
Still, the end of the case may open the door for renewed institutional partnerships, especially outside the U.S., where Ripple continues to grow its cross-border payments network powered by XRP Ledger technology.
Ripple has recently announced:
- New partnerships with banks and payment providers in Asia-Pacific and the Middle East.
- Expansion of its on-demand liquidity (ODL) corridors using XRP.
- Investment in stablecoin infrastructure and plans for tokenized real-world assets.
The company is also focusing on regulatory engagement, particularly in jurisdictions that are introducing formal crypto frameworks, such as Europe under MiCA, Singapore, and the UAE.
The Bigger Picture: End of a Legal Era, Start of a Policy Shift?
With Ripple’s appeal withdrawn and the SEC likely to follow suit, one of crypto’s defining legal chapters is coming to a close. But the regulatory battle is far from over.
The SEC continues to pursue enforcement actions against several other players in the space, while U.S. lawmakers remain locked in debate over which agency - the SEC or the CFTC - should oversee digital assets. Bills addressing stablecoins, DeFi, and centralized exchanges are still under review, and the 2024 presidential election has further politicized crypto regulation.
Nonetheless, the conclusion of the Ripple case sends a message that legal clarity is achievable, even if not through legislation alone.