XRP surged more than 3% on Friday, shortly after Ripple Labs CEO Brad Garlinghouse announced that the company is dropping its cross-appeal against the U.S. Securities and Exchange Commission (SEC) and expects the agency to do the same.
“Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said,” Garlinghouse posted on X Friday.
Following the announcement, XRP—the cryptocurrency tied to Ripple—climbed 3.36% to $2.18 within five hours, according to data from CoinMarketCap.
Garlinghouse says it’s back to business as usual
“We’re closing this chapter once and for all and focusing on what’s most important – building the internet of Value. Lock in,” Garlinghouse added.
The announcement follows a U.S. district court decision a day earlier, in which a judge denied a joint request from the SEC and Ripple seeking an indicative ruling to reduce a $125 million civil penalty and overturn a previous order that classified Ripple’s institutional XRP sales as securities transactions under Section 5 of the Securities Act.
“Ultimately, the Court granted in part the SEC’s request for an injunction and civil penalty because Ripple’s willingness to push the boundaries of the [Summary Judgment] Order suggests a likelihood that it will eventually, if it hasn’t already, cross the line,” Judge Analisa Torres stated.
Ripple lawyer says XRP’s legal status “remains unchanged”
Following the ruling, Ripple’s chief legal officer Stuart Alderoty stated, “The ball is back in our court.”
“The Court presented us with two choices: either drop our appeal challenging the decision on past institutional sales, or proceed with the appeal,” he explained.
“Either way, XRP’s legal status as not a security remains unchanged,” he said, adding:
“In the meantime, it’s business as usual.”
If the SEC follows through and drops its appeal, it could mark the end of a legal battle between Ripple Labs and the U.S. Securities and Exchange Commission that has stretched on for more than four years.
The SEC first filed the lawsuit in December 2020 against Ripple Labs, co-founder Chris Larsen, and CEO Brad Garlinghouse, alleging the company had raised $1.3 billion through the sale of XRP as an unregistered security—an alleged violation of federal securities laws.
In August 2024, Garlinghouse called Judge Torres’ decision to impose a $125 million fine a “victory” for Ripple, highlighting that it represented a 94% reduction from the SEC’s original demand of $2 billion in penalties.
