Ripple and the U.S. Securities and Exchange Commission (SEC) have officially moved to end their long-running legal dispute. On Thursday, both parties filed a joint motion to dismiss their appeals and cross-appeals in the Second Circuit under Federal Rule of Appellate Procedure 42(b)(1).
The motion follows an internal SEC vote in which most commissioners supported dismissal. As a result, Ripple, the SEC, and executives Chris Larsen and Brad Garlinghouse agreed to withdraw their respective appeals. Each side will bear its own legal costs and fees.
Ripple CLO Confirms End of Lawsuit
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the dismissal and declared the lawsuit officially over. He emphasized that Ripple can now focus fully on business operations after years of courtroom battles.
The SEC filed the case on December 22, 2020, accusing Ripple of violating securities laws through illegal XRP sales to U.S. investors. The case began in early 2021 and cost Ripple over $150 million in legal expenses.
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In July 2023, Judge Analisa Torres ruled that XRP itself is not a security. She also decided that Ripple’s programmatic XRP sales on exchanges did not qualify as investment contracts. However, she found Ripple liable for past institutional XRP sales, ordering a $125 million fine and a permanent injunction on future institutional sales.
Appeals and Settlement Speculation
The SEC appealed the decision on programmatic sales, while Ripple filed a cross-appeal over the institutional sales ruling. After President Donald Trump’s re-election, speculation grew that both sides would drop their appeals.
Earlier in 2025, the SEC and Ripple considered modifying the judgment to cut the fine to $50 million and remove the injunction. Judge Torres refused to alter her ruling but urged both parties to end the appeals process.
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Once the joint motion was filed, XRP’s price reacted sharply. After dipping below $3 earlier in the week, it surged to an intra-day high of $3.38 and now trades at $3.34, reflecting a 12.34% daily gain and a 12.27% rise for the week.
