From Courtroom to Boardroom: Ripple Closes the Book on SEC's Biggest Crypto Case
- Keyword Financial
- Jun 27
- 5 min read
Introduction
After nearly five years of legal battles, Ripple and the U.S. Securities and Exchange Commission (SEC) have agreed to mutually abandon all appeals, officially ending their high-profile dispute over the sale of XRP. This decision follows a recent federal court ruling that rejected both parties’ attempt to reduce Ripple’s penalty and dissolve a permanent injunction. As a result, Ripple will accept the original $125 million civil penalty and the ongoing restriction on institutional sales of XRP, while the SEC is expected to formally withdraw its own appeal in the coming weeks. The case, which began in December 2020, has been a defining moment for crypto regulation in the U.S.
The legal saga centered on whether Ripple’s sales of XRP constituted unregistered securities offerings. In a pivotal 2023 ruling, the court found that XRP sales to retail investors on public exchanges did not violate securities laws, but institutional sales did. This nuanced outcome provided some regulatory clarity for the broader crypto industry, especially regarding how digital assets are classified and sold. Despite attempts by both Ripple and the SEC to negotiate a reduced penalty and lift the injunction, Judge Analisa Torres maintained that the original restrictions should remain, citing the need for continued oversight.
With the appeals dropped, Ripple is now shifting its focus back to expanding global payment corridors, increasing token utility, and advancing adoption of the XRP Ledger. The conclusion of this case is seen as a turning point for the crypto sector, potentially paving the way for new products like an XRP ETF and signaling a less aggressive enforcement stance from the SEC under the current administration. The end of the Ripple-SEC battle not only brings closure for XRP holders but also sets a precedent for future regulatory actions in the digital asset space.
