XRP Update: SEC’s Prolonged Legal Battle with Ripple Concludes

The U.S. Securities and Exchange Commission’s 2020 lawsuit against Ripple Labs has officially concluded, as both parties notified the Second Circuit Court of Appeals about the voluntary dismissal of their respective appeals following a 2023 ruling in the case. The filing, made on Thursday, states that the SEC and Ripple will each cover their own costs. This joint stipulation marks the end of the legal dispute initiated in 2020 when the SEC accused Ripple of violating securities laws through the sale of XRP, a token closely linked to the company. Following Thursday’s announcement, XRP surged by 5%, trading at around $3.27 at the time of this report. The SEC appealed in 2024 after a district judge ruled in 2023 that Ripple’s sale of XRP to retail traders via exchanges was permissible, while Ripple cross-appealed to maintain its position in the case. In June, both parties agreed to drop their appeals, as Ripple CEO Brad Garlinghouse indicated, leaving in place the penalties established by District Judge Analisa Torres. These penalties were related to her conclusion that Ripple had breached securities laws by selling XRP to institutional traders and included $125 million in fines alongside a permanent injunction against future violations. Earlier this year, Ripple and the SEC paused their appeals following the retaking of office by Donald Trump as U.S. president and the installation of new leadership at the agency. The SEC has withdrawn over a dozen cases and investigations involving crypto firms in recent months. Multiple attempts to negotiate a reduction of these penalties were rejected by Judge Torres due to procedural issues and other concerns.