XRP News Today: Ripple's XRP Lawsuit Nears End as SEC Meeting Looms

The XRP lawsuit, a legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), is nearing its conclusion. The case, which began in December 2020, has significantly influenced the regulatory landscape for cryptocurrencies. Market observers are now focusing on July 3 as a potential end date for this prolonged legal dispute.

On June 27, Ripple's chief executive, Brad Garlinghouse, announced that the company would withdraw its cross-appeal of Judge Analisa Torres’s 2023 ruling. This move signals Ripple's intention to conclude the lawsuit definitively. Insiders anticipate that the SEC will follow suit by withdrawing its own appeal, thereby removing the remaining contested issues and paving the way for the lawsuit's dismissal. Following this announcement, the price of XRP experienced a slight increase of approximately 2 percent.

Judge Torres had previously rejected a joint request to reduce Ripple’s penalty to $50 million and lift a permanent injunction. She emphasized that no party can alter a judgment without "exceptional circumstances." Her order maintained the $125 million fine, which is tied to $728 million in institutional sales that violated securities rules. This aspect of the lawsuit remains one of the few unresolved points.

The focus now shifts to Washington, where the SEC has scheduled a closed-door meeting on July 3 at 2 p.m. ET. This meeting, under the Sunshine Act, is expected to cover "institutional litigation matters," which legal analysts believe includes a vote to drop the agency’s appeal in the XRP lawsuit. Procedurally, commissioners must approve any withdrawal before lawyers can file dismissal papers.

If the SEC votes to withdraw its appeal, the Southern District of New York’s July 2023 judgment will become final. This ruling clarifies that programmatic sales of XRP are not securities, while certain direct sales are. This clarity would allow Ripple to expand its operations in the U.S. without additional licensing, although it would still need to pay the outstanding fine. The decision also sets a precedent for other issuers challenging enforcement actions, elevating the XRP lawsuit from a company-specific issue to an industry-wide precedent.

Broader crypto sentiment has shifted positively in response to the potential resolution of the XRP lawsuit. Bitcoin reclaimed the $108,000 mark, and ether approached $6,400, moves attributed to relief that the most aggressive enforcement action in the U.S. is nearing its end. Funding rates on perpetual-swap venues have tightened, and open interest is approaching records, suggesting that leveraged traders are positioning for a decisive July breakout across major cryptocurrencies.

The expected resolution of the XRP lawsuit comes amid a broader recalibration of crypto oversight. Since January, the SEC has dismissed cases against major exchanges and reorganized its Crypto Task Force to emphasize compliance outreach. Ending the XRP lawsuit would further cement this shift toward negotiated solutions rather than courtroom battles.

However, there are still uncertainties. Commissioners could seek tougher remedies or refuse to drop the appeal, although sources close to the agency consider this "extremely unlikely." Even after an SEC vote, Judge Torres must sign off on any stipulation. Her recent settlement rebuke indicates that she is willing to enforce procedural rules in the XRP lawsuit until the final docket entry.

Assuming all procedural steps are completed, attorneys expect dismissal paperwork to be filed before the July 4 holiday. Following this, Ripple is poised to expand into the Asia-Pacific region, ETF sponsors are prepared to pursue listings, and the industry can finally move past the acronym that has dominated headlines: the XRP lawsuit.