In a partial win for Ripple in July 2023, U.S. District Judge Analisa Torres ruled that XRP was not a security when sold on public exchanges—giving the crypto community a regulatory boost. However, the court sided with the SEC regarding institutional sales, determining that such sales did violate securities laws. Ripple was ordered to pay a $125 million civil penalty. Both sides filed appeals in the wake of the split decision, dragging the case into another extended legal phase.
Now, in a surprise move, Ripple has formally withdrawn its cross-appeal of Judge Torres’s decision. While the SEC has not yet officially followed suit, insiders and legal analysts expect that it will do so in the coming weeks following internal deliberations and voting at the agency. Once both appeals are dropped, Judge Torres’s ruling will stand as the final word—setting a potentially transformative precedent in U.S. crypto regulation.
Ripple CEO Brad Garlinghouse confirmed the company’s decision during a June 27 press conference, stating, “We believe it is time to move forward, put this case behind us, and continue building the future of blockchain responsibly.” The news was met with optimism in the crypto markets, with XRP seeing modest gains on trading platforms in the immediate aftermath.
This resolution could open the doors for further institutional acceptance of XRP, including potential listings of XRP-based financial products such as spot ETFs. Moreover, it may serve as a benchmark for ongoing regulatory debates about how digital assets should be defined and governed in the United States.
Legal experts see the case as a turning point for SEC enforcement strategy. In recent months, the agency has also eased off other high-profile cases, including its enforcement actions against Coinbase and Kraken. With the Ripple case nearing closure, the crypto industry may be entering a new phase of negotiation, compliance, and regulatory clarity.
