Ripple Labs has officially ended its prolonged legal confrontation with the U.S. Securities and Exchange Commission by withdrawing its cross-appeal. The decision, announced by CEO Brad Garlinghouse, confirms Ripple’s intent to move on from the case that began in December 2020.
According to Garlinghouse, the SEC is also expected to withdraw its own appeal, signaling a mutual end to a case that has dominated the crypto regulatory landscape for years. The decision by Ripple to cancel was made after seeing the company fail to have a more favourable judgment after a federal court denied a joint request to amend the final order.
Judge Analisa Torres refused to amend the ruling made by Ripple and the SEC in August 2024. In the proposal, there was a provision for lessening the punishment of Ripple and also the cancellation of the injunction against the sale of Ripple on an institutional scale. The court was, however, of the view that neither party had reached a legal threshold of modifying a final judgment.
Court Denial Pushes Ripple Toward Settlement
The judge criticized the SEC for presenting contradictory arguments, and thus ascertained that the suggested amendments were not in the interest of the public. Consequently, Ripple could do two things: one of which was to go ahead with the cross-appeal, or the other was to settle with the existing terms.
Ripple has now opted to settle for the $125 million penalty and accept a permanent injunction on certain institutional sales. This marks the official close of one of the most closely watched enforcement actions in the digital asset industry.
The SEC had earlier agreed to cut down the penalty imposed on Ripple to $50 million and remove the injunction, subject to which the court tagged the motion as legally insufficient. The judge stated clearly that the final judgments could not be reopened unless on a firm legal ground.
Abandoning appeal, Ripple recognizes the stand of the court but returns its attention to the development of new products and the expansion of business. Garlinghouse called the decision to close a chapter and refocus on the visioning of the so-called Internet of Value.
XRP Price Remains Under Pressure Despite Legal Resolution
With the breakthrough in the court, XRP instantaneously did not reflect any signs of recovery. This token has been trading within the red, and at the time of this writing, the token was being sold at $2.18 according to CoinGecko.
The tame pricing reaction represents the situation in the market and a pessimistic mood among investors. Although the judgment at the end of the case eliminates one major cause of regulatory bias, the traders might be waiting for the situation to change before they start to venture into the market with relaxation.
The settlement of the court case by Ripple provides a long overdue closure to the case, which has shaped the relationship between the regulators and the crypto businesses. With the industry reaching maturity, the settlement provided by Ripple can establish a more viable course of legal structure to be used in the U.S.
Conclusion
Ripple’s decision to withdraw its cross-appeal marks the final chapter in a multi-year legal battle with the SEC. With regulatory tensions easing, the company is shifting focus to its broader mission of transforming global finance through blockchain solutions.
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