Ripple Labs Drops Cross-Appeal in SEC Legal Battle
Ripple Labs has agreed to drop its cross-appeal in its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). This decision follows the SEC’s move to also withdraw its own appeal. Ripple Chief Legal Officer Stuart Alderoty confirmed the news, calling it what should be his “last update” on the case.
The case, originally filed by the SEC in December 2020, accused Ripple of selling XRP tokens as unregistered securities. After years of courtroom proceedings, both parties are now ready to accept the August 2024 ruling by the U.S. District Court for the Southern District of New York. That ruling ordered Ripple to pay a $125 million penalty. Under the new agreement, the SEC will retain $50 million from the amount, while Ripple will receive the remaining $75 million as a refund.
Case Awaits SEC Commission Vote And Final Court Approval
Though the legal teams have reached a settlement, the matter is not fully closed. The agreement must still receive a formal vote from the SEC’s commissioners. The agency must also draft final court documents and obtain approval from the judge overseeing the case. As part of the settlement, the SEC will also ask the court to remove an earlier injunction that was imposed at the SEC’s request.
This injunction had limited Ripple’s activities in the U.S., and lifting it could mark a return to more open operations for the company. While no recent court filings have appeared in the public record, the process is now expected to move swiftly toward final closure.
Ripple’s Political Ties Raise Questions, But Officials Deny Link to SEC’s Settlement Decision
The Ripple vs. SEC case became one of the most high-profile enforcement actions in the U.S. crypto sector. It began during the administration of President Donald Trump in 2020, though the lawsuit was filed by then-SEC Chair Jay Clayton. Ripple CEO Brad Garlinghouse later expressed that the case might have unfolded differently if the SEC had been led by someone other than Gary Gensler.
Over time, Ripple became more involved in U.S. politics. During the 2024 election cycle, the company contributed $45 million to the Fairshake political action committee, which supports pro-crypto candidates. Ripple also pledged $5 million in XRP to Trump’s inauguration fund following his victory over then-Vice President Kamala Harris in the November 2024 presidential election.
Ripple executives, including Garlinghouse and Alderoty, attended the March 7 summit at the White House. During the summit, President Trump discussed future crypto regulations and the role of stablecoins. Alderoty has denied that political donations played any role in the SEC’s decision to drop its appeal.
Despite the legal breakthrough, XRP’s price has shown limited movement in response to the news. On March 26, XRP was trading at approximately $2.45, up just 0.12% from the previous day.
Although XRP has not seen an immediate price breakout, the end of the SEC case removes a major legal risk that has weighed on the token for years. This could help restore investor confidence in the long term. The case has also set a precedent for how U.S. regulators might handle other crypto projects going forward.