The long-standing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) appears to be drawing to a close, sending shockwaves across the cryptocurrency market. In a pivotal move, Ripple has officially dropped its cross-appeal in the high-profile case, signaling a definitive step toward resolution after more than four years of litigation. The announcement triggered an immediate 4% surge in XRP’s price, reinforcing market confidence in the digital asset’s future.
Brad Garlinghouse, CEO of Ripple Labs, confirmed the decision via a social media post, emphasizing that the company is now "closing this chapter once and for all." The move is contingent on the SEC reciprocating by dropping its own appeal—something regulators appear increasingly inclined to do amid a broader shift toward crypto-friendly policies.
This strategic withdrawal allows Ripple to redirect focus toward its core mission: building the Internet of Value—a decentralized financial ecosystem powered by blockchain technology.
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Settlement Reached: $50 Million Penalty Ends Years-Long Dispute
The decision follows a recent court development that set the stage for a swift resolution. On June 27, Judge Analisa Torres of the U.S. District Court for the Southern District of New York rejected a joint motion filed by Ripple and the SEC to secure an indicative ruling. That motion sought to reduce Ripple’s $125 million civil penalty and overturn the earlier classification of institutional XRP sales as securities transactions under the Securities Act.
Judge Torres maintained that her prior rulings—grounded in federal securities law—could not be easily reversed. She presented both parties with a clear choice: either proceed with a lengthy appeals process or mutually terminate litigation through a binding settlement.
Ripple and the SEC chose the latter. By dropping all outstanding appeals, they have effectively brought closure to one of the most watched legal sagas in crypto history.
Stuart Alderoty, Ripple’s Chief Legal Officer, affirmed that while the company accepts the financial penalty, its stance on XRP’s classification remains unchanged: XRP is not a security. This distinction is crucial—not just for Ripple, but for the entire digital asset industry.
Landmark Ruling: XRP Itself Is Not a Security
A turning point came in 2023 when Judge Torres delivered a nuanced verdict: while programmatic and retail sales of XRP do not constitute securities offerings, institutional sales totaling $728 million did violate securities laws. This split decision was hailed as a partial victory for Ripple and set a critical precedent for how cryptocurrencies are regulated in the United States.
In August 2024, the court ordered Ripple to pay a $125 million penalty—a fraction of the $2 billion initially sought by the SEC. More importantly, the judge explicitly ruled that XRP itself is not inherently a security, rejecting the SEC’s broad argument that token sales automatically equate to unregistered securities.
This clarification provided Ripple with significant legal leverage and paved the way for renewed exchange listings, institutional interest, and global expansion efforts.
Despite this progress, the SEC under former Chair Gary Gensler pursued an appeal, seeking harsher penalties. Ripple countered with a cross-appeal challenging regulatory overreach and injunctive measures. However, with a change in political leadership and regulatory tone in early 2025, the SEC began reevaluating its aggressive posture toward crypto firms.
Under new leadership aligned with pro-innovation policies, the agency has since settled cases with major players including Binance, Kraken, Coinbase, and Uniswap—further normalizing Ripple’s path to resolution.
Whale Activity Signals Strong Market Confidence
Market reaction to the lawsuit’s conclusion has been swift and bullish. Within hours of Ripple’s announcement, XRP surged to $2.18—an increase of over 4% in 24 hours—and continues to gain momentum.
Over the past year, XRP has appreciated by an impressive 347%, outperforming many top-tier digital assets. Although it reached an all-time high of $3.40 in January 2025, price consolidation followed in subsequent months. Still, XRP has consistently traded above $2 since December 2024, reflecting strong underlying support.
Notably, trading volume has dipped to levels not seen since August 2020—yet this decline may mask deeper trends. On-chain data from CryptoQuant reveals a significant shift: whale wallets (holders with over 1 million XRP) are actively accumulating.
In May 2025, 90-day moving average whale flows turned positive for the first time since early 2024, reversing four months of net outflows during a correction phase. This mirrors patterns observed in late 2024, when sustained whale accumulation preceded a 420% rally in Q4—coinciding with major macro developments, including the November 2024 election outcome.
Today, there are 2,850 whale addresses holding over 1 million XRP—the highest number ever recorded—while addresses with more than 10,000 XRP have grown to 306,000, up 6.2% year-to-date.
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Sentiment Rebounds as Institutional Trust Grows
Santiment analytics report shows that public sentiment around XRP has reached a 17-day high following news of the $50 million settlement framework. Despite months of sideways price action, persistent large-scale accumulation suggests strong long-term conviction among institutional and high-net-worth investors.
This growing trust stems not only from legal clarity but also from Ripple’s expanding real-world use cases—particularly in cross-border payments through its partnerships with financial institutions globally.
With regulatory uncertainty fading, analysts project that XRP could target new all-time highs as early as Q4 2025, especially if macroeconomic conditions remain favorable and adoption accelerates.
Frequently Asked Questions (FAQ)
Q: Why did Ripple drop its cross-appeal against the SEC?
A: Ripple dropped its cross-appeal to finalize the resolution of the lawsuit and move forward without prolonged litigation. The company views this as an opportunity to focus on innovation and global expansion rather than courtroom battles.
Q: Does this mean XRP is officially not a security?
A: While courts have ruled that XRP itself is not inherently a security, certain sales—particularly to institutional investors—were deemed unregistered securities offerings. This distinction supports Ripple’s argument against blanket classification of cryptocurrencies as securities.
Q: How much did Ripple settle for with the SEC?
A: Ripple agreed to a $50 million penalty as part of a mutual dismissal of appeals. The original $125 million escrow amount will be partially returned, with $75 million going back to Ripple upon court approval.
Q: Will XRP price go up after the lawsuit ends?
A: Historical trends and current on-chain data suggest upward momentum. With whales accumulating and sentiment improving, many analysts believe XRP is positioned for a potential breakout in late 2025.
Q: What does this mean for other crypto companies facing SEC lawsuits?
A: The outcome sets a powerful precedent. It underscores that digital assets can be evaluated based on context—not categorically labeled as securities—potentially influencing future rulings and regulatory approaches.
Q: Is the SEC changing its stance on cryptocurrency regulation?
A: Yes. Since early 2025, the SEC has shifted toward more collaborative enforcement, opting for settlements over protracted litigation with major crypto platforms—a sign of evolving regulatory maturity.
The resolution between Ripple and the SEC marks more than just a corporate victory—it represents a milestone for crypto regulation in America. As legal clarity strengthens and market confidence returns, XRP stands at the forefront of a new era defined by innovation, adoption, and institutional trust.
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