Key Takeaways
- Ripple concludes its 4-year legal battle with the SEC, shifting focus to XRP’s utility in cross-border payments.
- XRP price surged to $2.149 following Ripple’s decision to drop its cross-appeal against the SEC.
- The SEC will dismiss its own appeal, finalizing the resolution of Ripple’s XRP-related litigation.
- Settlement reached at $50 million, clarifying XRP’s non-security status for retail investors.
The End of a Landmark Crypto Legal Battle
Ripple has officially announced it will withdraw its cross-appeal against the U.S. Securities and Exchange Commission (SEC), marking the end of a four-year lawsuit over XRP’s regulatory classification. This decision signifies a pivotal moment in the conflict between Ripple and the SEC, allowing the company to refocus on its mission to build the Internet of Value.
CEO Brad Garlinghouse confirmed the move, emphasizing Ripple’s commitment to advancing XRP’s role in global financial solutions. The SEC is anticipated to reciprocate by dropping its pending appeal, closing the litigation entirely.
Background: The SEC’s Lawsuit Against Ripple
The legal dispute began in December 2020 when the SEC accused Ripple of conducting unregistered securities offerings via XRP sales. The case became a benchmark for crypto regulation, with Ripple challenging the SEC’s allegations.
In 2023, Judge Analisa Torres delivered a split ruling:
- Programmatic sales of XRP to retail investors were not securities transactions.
- Institutional sales violated securities laws, resulting in a $125 million penalty for Ripple.
The SEC initially sought a $2 billion fine**, but after negotiations, both parties agreed to a **$50 million settlement—a critical step toward resolving XRP’s legal ambiguity.
Why Ripple Dropped Its Cross-Appeal
Despite efforts to reduce the penalty further, Judge Torres denied Ripple’s joint motion with the SEC, prompting the company to abandon its appeal. This strategic decision aligns with the judge’s suggestion to conclude the case by mutually dismissing appeals.
👉 Explore how Ripple’s settlement impacts XRP’s future
Market Reaction: XRP Price Surge
Following the announcement, XRP’s price spiked to $2.149, reflecting investor optimism. Trading volume increased as the market welcomed the legal clarity, particularly for retail XRP holders.
What’s Next for Ripple and XRP?
With the lawsuit resolved, Ripple can now:
- Accelerate adoption of XRP for cross-border payments.
- Expand partnerships with financial institutions.
- Innovate in blockchain-based financial solutions.
FAQs: Ripple’s SEC Settlement
1. Does this mean XRP is officially not a security?
Yes, for retail investors. Judge Torres’ ruling confirmed XRP’s non-security status in programmatic sales, though institutional sales remain regulated.
2. Why did Ripple settle for $50 million?
To avoid prolonged litigation and redirect resources toward business growth. The reduced penalty reflects negotiated terms with the SEC.
3. Will the SEC appeal again?
Unlikely. The SEC is expected to drop its appeal, finalizing the case’s closure.
4. How does this affect XRP’s price long-term?
Legal clarity may bolster investor confidence, but market trends will depend on Ripple’s execution of its payment solutions.
👉 Stay updated on crypto regulations and trends
Final Thoughts
Ripple’s decision to end its legal battle with the SEC removes a major hurdle for XRP’s ecosystem. By focusing on real-world utility and regulatory compliance, Ripple aims to solidify XRP’s position in the global payments landscape.
For traders and crypto enthusiasts, this resolution underscores the importance of regulatory adaptability in the evolving digital asset space.
### **SEO-Optimized Elements**
- **Keywords**: XRP lawsuit, Ripple SEC settlement, XRP price, cross-border payments, cryptocurrency regulation.