XRP News Today: Ripple vs SEC: July 3 Deadline Looms for XRP's Legal Fate

The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is nearing a critical juncture. Following Ripple’s decision to withdraw its cross-appeal in late June, the focus has shifted to July 3, the deadline for the SEC to take decisive action on its appeal. This move could significantly impact not only XRP but also the broader regulatory landscape for digital assets in the United States.

The case began in December 2020 when the SEC filed a lawsuit against Ripple Labs, alleging that the company raised over $1.3 billion through an unregistered securities offering by selling XRP. In July 2023, U.S. District Judge Analisa Torres issued a landmark ruling that found XRP is not a security when sold to the general public on exchanges but is deemed a security when sold directly to institutional investors. Both Ripple and the SEC appealed portions of the decision, with Ripple challenging the finding regarding institutional sales and the SEC seeking to reverse the ruling that secondary market sales and other distributions did not qualify as securities offerings.

On June 27, Ripple CEO Brad Garlinghouse confirmed that the company would drop its cross-appeal. He also noted that the SEC was “expected to drop their appeal” as well. This followed Judge Torres’ rejection of a joint motion filed by both parties requesting the court to vacate a permanent injunction and reduce Ripple’s $125 million penalty. With Ripple having exited the appellate process, the focus is now on the SEC’s response. The SEC has until July 3 to either withdraw its appeal, proceed to the appellate court, or pursue another legal avenue. The outcome of that decision could determine the future of XRP’s regulatory status.

If the SEC decides to drop its appeal, it would solidify Judge Torres’ ruling that XRP is not a security in programmatic (i.e., public exchange) sales. This would provide long-awaited legal clarity for Ripple, its partners, and the entire crypto industry. The absence of further litigation would lift a cloud that has lingered over XRP for nearly four years and potentially catalyze a significant price breakout. This possibility is fueling optimism across the XRP community. Captain Redbeard (@Brett_Crypto_X), a prominent analyst and XRP advocate, captured the sentiment in a recent X post: “July 3 — the moment of truth. Ripple dropped its appeal. The SEC’s next move could end it all. If they follow through, XRP isn’t just ready — it’s about to rip. Game-changing clarity is within reach.”

For Ripple, a finalized legal victory would mean a renewed focus on scaling its payments infrastructure and expanding global partnerships without the constant drag of SEC scrutiny. For XRP holders and market watchers, it could signal the start of a new phase of adoption and market confidence. Legal experts, including John Deaton, have suggested that if the SEC withdraws now, it would reflect a broader softening of its enforcement posture following recent court losses. In that case, the Ripple ruling could stand as one of the most consequential legal precedents for crypto in U.S. history, potentially shielding other digital assets from being classified as securities in secondary market transactions.

As the SEC’s deadline looms, the stakes couldn’t be higher. A full withdrawal of the appeal would bring long-sought closure to a case that has shaped the regulatory discourse in crypto for nearly four years. If the SEC chooses instead to escalate, uncertainty will persist — but so too will the risk of another loss for the agency. Whether July 3 proves to be the “moment of truth” remains to be seen. But one thing is clear: XRP’s legal future, and perhaps the future of crypto regulation in the U.S., now hangs in the balance.