The long-running lawsuit against Ripple Labs is officially over. Today, some of the crypto firm’s top executives confirmed that both the SEC and Ripple would be dropping their appeals with the U.S. Court of Appeals for the Second Circuit.
This move will finally put an end to Ripple’s legal battles at a federal level, albeit with some restrictions.
Judge Torres Denies Motion to Modify Judgment
Yesterday, we reported how Judge Analisa Torres — the same judge who ruled XRP as a non-security in 2023 — denied the joint motion from Ripple and the SEC. The move aimed to reduce Ripple’s $125 million penalty and lift the permanent injunction on institutional XRP sales.
Judge Torres rejected the request, stating that the parties failed to show the “exceptional circumstances” required to vacate a final judgment. As a result, the original restrictions and penalties remain in place.
After that failed attempt, Ripple’s executives appeared content to cut their losses and shift their focus back to business developments.
Stuart Alderoty Signals Ripple’s Next Move
Following the ruling, Ripple’s Chief Legal Officer Stuart Alderoty posted that the court had given them two options: either dismiss their appeal or continue fighting.
He hinted that Ripple would likely walk away from the appeal, and that’s exactly what happened. Alderoty emphasized that XRP’s legal status as not a security remains unchanged, and that it’s business as usual from here on out.
Is the Ripple Lawsuit Over?
According to CEO Brad Garlinghouse, yes. In a post on X, he confirmed that Ripple is dropping its cross-appeal and that the SEC is expected to do the same. “We’re closing this chapter once and for all,” he wrote, adding that the company is now focused on building the Internet of Value.
With both sides backing off, the courtroom drama that’s defined Ripple’s last few years is finally coming to a close.
What It Means for XRP
For XRP, the outcome is a mixed bag:
- XRP is not considered a security when sold to retail investors
- Institutional XRP sales remain restricted, which limits Ripple’s fundraising options
- Ripple will pay a $102.6 million fine, slightly reduced from the original $125 million
- The lawsuit’s end removes a long-standing cloud of uncertainty over the company and the asset
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