Ripple, SEC Withdraws Appeal, Ends 5-Year Legal Battle

Ripple will withdraw its appeal in the protracted legal battle with the Securities and Exchange Commission, signaling the end of one of the most consequential lawsuits in the cryptocurrency industry. The CEO of Ripple, Brad Garlinghouse, announced this move on social media on June 27 and also revealed that the SEC is expected to withdraw Ripple's appeal. He wrote: "We will close this chapter once and for all, and focus on the most important thing – building a value internet." This decision was made after Judge Analisa Torres denied a motion for a ruling on the merits earlier this week, marking the second time she has rejected a motion for appeal. Ripple's legal director, Stuart Alderoty, explained that the options presented by the court are to dismiss the appeal against the previous ruling regarding the historical sales of XRP by organizations or to proceed with the appeal and continue litigation. The SEC sued Ripple in December 2020, alleging that the company conducted an unregistered securities offering by selling XRP tokens to institutional investors. In July 2023, Judge Torres ruled that while XRP itself is not a security and sales on the secondary market do not violate securities laws, Ripple's direct sales to institutional investors constitute an unregistered securities offering. This ruling is seen as a landmark divisive decision, with Ripple securing a major victory for the industry by clarifying that the programmatic sales and secondary market transactions of XRP do not fall under the jurisdiction of the SEC. However, the finding regarding institutional sales raises potential financial penalties for Ripple. The SEC initially signaled its intention to appeal the ruling regarding the non-security status of XRP but later indicated it would withdraw that appeal. Ripple's decision to abandon its cross-appeal essentially ended the litigation regarding the organization's sale ruling, avoiding further legal costs and uncertainty. This outcome preserves the legal transparency of XRP in the US market while the company's resolution is completed. Ripple is expected to pay a civil penalty related to the organization's sales, although the final amount has yet to be determined. With both appeals set to be withdrawn, the lawsuit closes a chapter that has shaped the cryptocurrency regulatory landscape for nearly five years. Ripple now plans to refocus on expanding its global payment corridor, token utility, and the adoption of its XRP Ledger as it drives forward its vision of the Internet of Value.