XRP News: SEC Drops Appeal in Ripple Case, Strengthening XRP’s Status

The U.S. SEC has officially withdrawn its appeal in the Ripple case, marking a major shift in the legal battle over XRP’s classification. Meanwhile, the agency had previously challenged a July 2023 court ruling that determined XRP was not a security when sold on public exchanges.

The ruling of Judge Analisa Torres indicated that although Ripple’s sales of XRP to institutional investors fell under securities laws, its public sales did not. However, $125 million was slapped on Ripple as a fine, but that part was put on hold until appeal. The SEC has moved aside and now is Ripple’s opportunity to challenge the penalty.

Ripple CEO Brad Garlinghouse described the SEC’s move as a “long overdue surrender,” while Chief Legal Officer Stuart Alderoty stated that the company is now in control of its next steps.

Ripple’s Next Steps in Legal Battle

Ripple had previously filed a cross-appeal in October 2024, seeking to reduce or eliminate the $125 million fine. With the SEC withdrawing its own appeal, the company now has an advantage in negotiations.

Crypto lawyer John Deaton, who represented XRP holders in the lawsuit, thinks this might result in a settlement. “Everything has transformed,” Deaton noted, indicating the alteration in regulatory strategy with the new U.S. administration. He wondered if Ripple ought to continue paying the entire penalty considering the SEC’s updated position.

This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.

The future is bright. Let's build. pic.twitter.com/7WsD0C92Cm

— Brad Garlinghouse (@bgarlinghouse) March 19, 2025

Nonetheless, a significant problem persists—the court order that prohibits Ripple from directly selling XRP to institutional investors in the U.S. Deaton pointed out that this limitation could hinder Ripple’s ability to collaborate with banks and financial entities.

SEC’s Changing Stance on Crypto Regulation

The SEC’s decision to no longer appeal is part of a wider shift in how the Trump administration governs crypto. But the administration has eased the pressure on the industry since taking power in January.

Similarly, the SEC has settled out of the lawsuit against major crypto exchanges Coinbase and Kraken. Also, the agency hinted at a possible settlement of its fraud case against Justin Sun, a Chinese entrepreneur and key figure in a Trump backed crypto project.

Lawyer Paul Atkins, who has supported innovation of cryptocurrency, has been selected to replace Gary Gensler as SEC chair. Gensler, who had taken an aggressive stance on crypto enforcement under him as head of the SEC, had irked the industry’s leaders.

XRP Price Reacts to Legal Development

After the SEC announcement, XRP price rallied up to $2.46 with a 24 hour trading volume of over $10 billion. Over the week, the cryptocurrency’s value has increased by close to 10% to push market capitalization to $143 billion.

Although the SEC’s withdrawal removes a significant hurdle for Ripple, the company’s legal brigade now needs to decide over pushing further with the cross appeal. The results of those discussions would give a subsequent impact on XRP in the market.