XRP climbs as Ripple-SEC appeal suit nears resolution, sparking 3% rally

XRP’s price surged Friday after Ripple CEO Brad Garlinghouse announced the company is dropping its cross-appeal in the long-running Ripple-SEC appeal suit, a move that could finally resolve the high-stakes legal clash with the U.S. Securities and Exchange Commission (SEC). The cryptocurrency climbed 3.36% to $2.18 within hours of Garlinghouse’s statement, reigniting trader optimism.

“Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said,” Garlinghouse posted on X.

The decision is a key moment in the Ripple-SEC appeal suit, which has dragged on since December 2020.

Ripple shifts focus to “internet of value” after legal limbo

Garlinghouse framed the move as a strategic pivot, stating,

“We’re closing this chapter once and for all and focusing on what’s most important—building the internet of value.”

The Ripple-SEC appeal suit has overshadowed Ripple’s business operations for nearly four years, but Friday’s announcement suggests the firm is ready to move forward.

However, XRP remains down 4.44% over the past month, reflecting lingering uncertainty. The SEC has yet to confirm whether it will follow Ripple’s lead in abandoning appeals, leaving a sliver of doubt in the Ripple-SEC appeal suit’s finality.

Court ruling sets stage for Ripple-SEC appeal suit resolution

The development comes just a day after Judge Analisa Torres denied a joint SEC-Ripple request to reduce a $125 million civil penalty and revisit a key ruling on XRP’s classification. The judge criticized Ripple’s “willingness to push the boundaries” of her earlier summary judgment, which found that institutional sales of XRP violated securities laws.

Despite the setback, Ripple’s chief legal officer, Stuart Alderoty, emphasized that “XRP’s legal status as not a security remains unchanged.” He added, “In the meantime, it’s business as usual,” showing Ripple’s confidence in its position in the ripple-sec appeal suit.

SEC’s $2 billion demand slashed to $125 million in Ripple-SEC appeal suit resolution

The SEC initially sought $2 billion in penalties from Ripple, alleging the firm illegally sold XRP as an unregistered security. But in August 2024, Judge Torres slashed the fine by 94%, calling the SEC’s original demand excessive. Garlinghouse hailed the reduction as a “victory,” though the Ripple-SEC appeal suit kept the broader dispute alive until now.

If the SEC abandons its appeal, the Ripple-SEC appeal suit could conclude without further delays, providing much-needed regulatory clarity for XRP. The cryptocurrency community has long argued that the SEC’s case stifled adoption, and a resolution may unlock new growth.

What’s next for XRP after Ripple-SEC appeal suit resolution?

With Ripple stepping back from litigation, analysts are watching for the SEC’s next move. A dismissal would solidify XRP’s non-security status for retail transactions, though institutional sales remain under scrutiny. The Ripple-SEC appeal suit has been a defining battle for crypto regulation, and its conclusion could set a precedent for other SEC enforcement actions.