28-6-2025 – The protracted legal dispute between Ripple Labs and the United States Securities and Exchange Commission has reached its denouement, with both parties electing to abandon their respective appeals rather than pursue further litigation.
In a momentous development that draws the curtain on one of the cryptocurrency industry’s most closely watched legal battles, Chief Executive Brad Garlinghouse characterised the conclusion as a “resounding victory” whilst announcing the mutual withdrawal of appeals that have prolonged proceedings since the case’s inception in December 2020.
Judge Torres rejects proposed $50M deal
The resolution comes following Judge Analisa Torres’s decisive rejection of attempts by both parties to implement a restructured settlement arrangement. Judge Torres rebuffed the proposed $50 million settlement, citing procedural inadequacies and insufficient legal justification, whilst emphasising that both entities remained at liberty to withdraw their appeals entirely.
Legal experts had anticipated this outcome following the judicial guidance provided to both parties. Rather than continue pursuing appellate challenges to the original $125 million penalty imposed by Judge Torres, the cryptocurrency firm and regulatory authority have opted to conclude the matter definitively.
Political shifts played a role
The case originated during the final weeks of the Trump administration but was prosecuted extensively under the subsequent Biden government. The litigation commenced under Trump’s tenure but was pursued throughout the Biden administration, creating a regulatory landscape that shifted dramatically following the recent change in political leadership.
The Commission’s initial enforcement action centred on allegations that Ripple’s institutional sales of XRP tokens constituted unregistered securities offerings. Judge Torres’s landmark ruling established that whilst the company had indeed violated securities regulations through institutional sales, XRP itself did not qualify as a security when sold to retail investors.
Following the August 2024 judgment, both parties filed competing appeals. The SEC sought enhanced monetary penalties, whilst Ripple challenged both the injunctive relief and the financial sanctions imposed. The regulatory body’s enforcement approach subsequently evolved under the new administration, leading to negotiations for a reduced settlement figure.
The proposed arrangement would have seen the Commission receive $50 million in complete satisfaction of the penalty, with the remaining funds returned to Ripple, alongside dissolution of the injunctive measures. However, the court’s procedural requirements proved insurmountable for the proposed settlement structure.
The case’s resolution eliminates a significant source of regulatory uncertainty that has overshadowed the broader cryptocurrency sector for more than four years. Market participants have closely monitored proceedings, viewing the outcome as potentially precedent-setting for future regulatory enforcement actions against digital asset companies.
XRP price spikes following announcement
XRP’s market valuation responded positively to the announcement, with the token experiencing immediate gains following confirmation of the appeals withdrawal. The cryptocurrency reached heights of $2.149 before settling at elevated levels compared to recent trading ranges.
