20-3-2025 – The protracted legal saga between Ripple and America’s financial watchdog has drawn to a close, marking a decisive shift in the regulatory landscape for digital assets.
The Securities and Exchange Commission’s decision to withdraw its appeal against Ripple represents a remarkable turning point, following Judge Torres’ groundbreaking ruling that XRP does not constitute a security—a verdict that sent ripples through the financial technology sphere last summer.
Speaking to Bloomberg, Ripple’s chief executive Brad Garlinghouse reflected on the marathon legal battle that has consumed nearly $150 million in defence costs. “This wasn’t merely about safeguarding our interests; it was about championing the entire cryptocurrency ecosystem,” Garlinghouse emphasised, highlighting the broader implications of their legal triumph.
Whilst the SEC’s retreat signals a significant victory, the matter retains certain unresolved elements. A substantial civil penalty of $125 million, currently held in escrow, remains a point of contention. Garlinghouse contests this sanction, noting the absence of demonstrable investor losses throughout the proceedings.
The legal dynamics have undergone a fascinating role reversal, with Ripple transitioning from defendant to plaintiff through their cross-appeal. “We’ve seized the initiative,” Garlinghouse declared, outlining their strategic position in the ongoing proceedings.
This resolution carries profound significance for the wider cryptocurrency industry, potentially establishing precedents for future regulatory frameworks. The SEC’s initial allegations, lodged in December 2020, accused Ripple of conducting unregistered security offerings through XRP—claims that have now been substantially undermined.
The conclusion of this landmark case suggests a possible shift in the SEC’s approach towards cryptocurrency regulation, with Garlinghouse intimating that the regulatory body may harbour regrets about initiating the proceedings, particularly in light of Judge Torres’ definitive ruling.
For Ripple’s executive team, including Garlinghouse himself, the SEC’s withdrawal brings personal vindication after years of legal uncertainty. The outcome potentially heralds a new chapter in the relationship between innovative financial technologies and traditional regulatory frameworks.
