Ripple is Dropping Their Appeal
Says CEO Brad Garlinghouse and SEC to follow
The SEC v Ripple lawsuit stands as one of the most consequential legal battles in the history of cryptocurrency regulation. For nearly five years, the case has shaped the interpretation of securities law as it applies to digital assets in the United States, with implications for the broader blockchain industry. The latest developments—including Judge Analisa Torres’s recent rejection of a joint settlement motion and the subsequent announcement by Ripple CEO Brad Garlinghouse that both parties will drop their appeals—signal that the litigation is finally reaching its endgame, though the legacy of its rulings will persist.
The lawsuit, initiated by the SEC in December 2020, centered on Ripple’s sale of XRP tokens. The SEC alleged that Ripple had offered and sold XRP as an unregistered security, in violation of Section 5 of the Securities Act of 1933. The agency argued that, by failing to register XRP, Ripple deprived investors of material information necessary for informed investment decisions. Ripple countered that XRP was a digital asset, not a security, and thus not subject to SEC jurisdiction.
In July 2023, Judge Torres issued a landmark partial summary judgment. She found that while Ripple’s sales of XRP to institutional investors—totaling $728 million—constituted unregistered securities transactions, sales to the general public on digital asset exchanges did not qualify as securities offerings. This nuanced distinction set a precedent for how digital assets might be treated under U.S. securities law and was widely interpreted as a partial victory for the crypto industry.
Following the 2023 ruling, both parties filed appeals. Ripple and the SEC also sought to negotiate a settlement. In March 2025, they reached a tentative agreement to reduce Ripple’s civil penalty from $125 million to $50 million and to lift the permanent injunction imposed by Judge Torres, which required Ripple to comply with federal securities laws moving forward. The parties jointly requested that the court endorse this settlement and vacate the injunction.
Judge Torres, however, firmly rejected this motion in late June 2025. She criticized the parties for attempting to circumvent the court’s final judgment, which had already found Ripple in violation of federal securities law and imposed both a financial penalty and an injunction to prevent future violations. Torres emphasized that the parties had not demonstrated “exceptional circumstances” that would justify setting aside her earlier order, nor had they shown that the public interest or the administration of justice would be served by doing so.
In her ruling, Torres underscored the importance of judicial accountability and the rule of law, stating:
“The Court respects the freedom of parties to amicably resolve their disputes. It is also true that the SEC, like any other law enforcement agency, has discretion to change course after an enforcement action is initiated. But the parties do not have the authority to agree not to be bound by a court’s final judgment that a party violated an Act of Congress in such a manner that a permanent injunction and a civil penalty were necessary to prevent that party from violating the law again. For that, the parties must show exceptional circumstances that outweigh the public interest or the administration of justice. They have not come close to doing so here.”
She further clarified that if the parties wished to end the litigation, they could either withdraw their appeals or proceed with them, but the court would not absolve Ripple of its obligations under the law as previously determined.
In the immediate aftermath of Judge Torres’s ruling, Ripple’s Chief Legal Officer, Stuart Alderoty, acknowledged the setback but stated that the company was still considering its next legal steps. The SEC, for its part, declined to comment publicly.
However, on June 27, 2025, Ripple CEO Brad Garlinghouse Tweeted that Ripple would drop its cross-appeal against the SEC, and that the SEC was expected to do the same. He framed this as the definitive end of the legal battle, stating:
“Ripple is dropping our cross appeal, and the SEC is expected to drop their appeal, as they’ve previously said. We’re closing this chapter once and for all, and focusing on what’s most important—building the Internet of Value. Lock in.”
This announcement suggests that both parties are ready to accept the court’s final judgment and move forward, effectively closing the file on the SEC v Ripple lawsuit.
Implications and Finality
The case’s conclusion is significant for several reasons:
Legal Precedent: Judge Torres’s rulings have established important distinctions between sales of digital assets to institutional investors and to the general public, providing guidance for future regulatory actions and industry compliance.
Regulatory Clarity and Uncertainty: While the SEC has recently adopted a more crypto-friendly posture under new leadership, the court’s insistence on upholding its judgment demonstrates that judicial oversight remains a critical check on regulatory discretion.
Industry Impact: The lawsuit has been closely watched by the crypto industry, with XRP’s status as the fourth-largest cryptocurrency by market cap underscoring its importance. The resolution—or lack thereof—of this case has had ripple effects (no pun intended) throughout the sector.
Finality: With both sides dropping their appeals, the case will not be reviewed by a higher court, and Judge Torres’s rulings will stand as the final word on the matter—at least for now.
The SEC v Ripple lawsuit is reaching its final chapter. Judge Analisa Torres’s recent rejection of the joint settlement motion, combined with Ripple CEO Brad Garlinghouse’s announcement that both parties will drop their appeals, signals that the legal battle is over. While the court’s rulings will continue to influence the regulatory landscape for digital assets, the litigation itself is set to close, allowing Ripple and the broader crypto industry to move forward—albeit under the shadow of the court’s injunction and the legal precedent established by this landmark case.
By Douglas J. Boggs, founder of "Smoke and Mirrors…and the Art of Critical Thinking" and author of “Quantum of Justice - The Fraud of Foreclosure and the Illegal Securitization of Notes by Wall Street”. Douglas has two new books coming out in early 2025 to include: “The Psychology of Money” and “Mental Toughness for the Crypto Investor / Entrepreneur” to help guide readers through the investing world of crypto.
