Ripple Wins Landmark Victory as SEC Withdraws Appeal

After more than four years of intense legal proceedings, the U.S. Securities and Exchange Commission (SEC) officially withdrew its appeal against Ripple. This marks a significant milestone in the prolonged courtroom battle that has shaped discussions around cryptocurrency regulation in the United States. Ripple’s Chief Legal Officer, Stuart Alderoty, celebrated the development on social media, calling it a landmark victory for the company and the broader digital asset industry.

With the SEC dropping its appeal, Ripple is now in the driver's seat and will evaluate how best to pursue its cross appeal. Alderoty emphasized that the Ripple lawsuit has set an important legal precedent, with implications that extend beyond the company itself. The case has been closely monitored across the crypto space, as its outcome influences how U.S. regulators scrutinize blockchain projects. The SEC initially sued Ripple Labs in December 2020, alleging that the company had sold XRP as an unregistered security. Ripple, however, resisted the regulatory body’s claims, arguing that XRP did not meet security criteria. Following a mixed ruling in June 2023, the SEC escalated the matter by appealing the decision in early 2024. With the appeal withdrawn, Ripple finds itself in a stronger position to challenge any aspects of the case it deems unfavorable.

With the legal battle behind it, Ripple is shifting its focus toward business expansion. According to Alderoty, the resolution of the case allows the company to operate without the distraction of ongoing litigation. This is expected to accelerate Ripple’s efforts in the global cross-border payments sector. Alderoty stated, “With the SEC stepping back, Ripple is in full control, and we’ll determine the best course for our cross-appeal.”

However, Alderoty emphasized that Ripple is not out of the woods yet. The company still faces decisions regarding the $125 million penalty and the restraining order to prevent Ripple from selling XRP to institutions. Ripple's legal team will now assess how to proceed with the cross appeal, which could provide more legal insight into XRP. If Ripple decides to pursue the appeal, it might lead to a definitive determination from a higher court regarding whether investment contracts need specific contracts. Alternatively, Ripple could seek to address the remaining fine and injunction or move for a settlement with the SEC to come to a new agreement that will decrease the penalty.

The withdrawal of the SEC's appeal is in respect of one aspect of the case covering the program and secondary market offering of XRP. Alderoty reassured everyone that Ripple is now at the wheel and will be able to pursue growth without the distraction of prolonged litigation. The company's next moves could include further pursuit of the cross appeal, addressing the remaining fine and injunction, or seeking a settlement with the SEC. While Alderoty did not disclose further details about the company's strategy, he reassured everyone that Ripple is now in the driver's seat and will evaluate the best course of action for its cross appeal.