Ripple Labs has officially dropped its cross-appeal against the U.S. Securities and Exchange Commission (SEC), signaling the conclusion of a legal battle that has spanned over three years and shaped the regulatory discourse surrounding digital assets in the United States. The decision was confirmed by Ripple CEO Brad Garlinghouse on Friday, shortly after a New York federal judge declined to approve the company’s latest $50 million settlement offer.

Background of the Case

The SEC sued Ripple in December 2020, alleging that the company’s sale of XRP constituted an unregistered securities offering worth over $1.3 billion. Ripple countered by arguing that XRP should not be classified as a security and that its sales were compliant with existing laws. The legal fight became a test case for how cryptocurrencies might be treated under U.S. securities law.

In a partial victory for Ripple, a judge ruled in mid-2023 that XRP sales to institutional investors violated securities laws, but programmatic sales (such as those on exchanges) did not. Both parties initially appealed aspects of this ruling. Ripple’s now-withdrawn cross-appeal had aimed to further challenge the unfavorable parts of that decision.

Why Ripple Is Dropping the Appeal

Sources familiar with Ripple’s strategy suggest the company sees little value in extending litigation that has already cost tens of millions of dollars and generated uncertainty for its business and XRP holders. By abandoning the appeal, Ripple is effectively accepting the current legal outcome, which lets it continue XRP programmatic sales without further regulatory overhang but leaves some compliance obligations regarding past institutional sales.

The rejected $50 million settlement attempt reflects the court’s cautious stance on crypto-related settlements, likely driven by concerns about deterrence, transparency, and investor protection. It highlights the difficulty crypto firms face when trying to resolve enforcement actions under U.S. law.

Market and Industry Impact

The closure of Ripple’s appeals process could help stabilize sentiment around XRP, which has seen volatile price swings tied to case developments. As of late June 2025, XRP is trading near $0.52, down roughly 10% since the beginning of the year but holding above key support levels.

For the broader crypto industry, Ripple’s retreat may serve as a cautionary tale: fighting the SEC to the bitter end can drain resources and delay business growth. It may also encourage other firms facing SEC scrutiny — from exchanges to token issuers — to pursue earlier settlements or compliance pathways rather than protracted legal fights.

What’s Next for Ripple?

Ripple is expected to intensify its global expansion efforts, particularly in jurisdictions with clearer crypto regulations such as the European Union, the Middle East, and parts of Asia. The company continues to advocate for U.S. legislation that would provide the crypto industry with the regulatory clarity it has long sought.

Meanwhile, the SEC is likely to cite the Ripple case in future enforcement actions, using it as precedent to bolster its position that many crypto assets fall under its jurisdiction.