Ripple (XRP): SEC Withdraws Appeal, But One Question Remains

The US Securities and Exchange Commission (SEC) has decided to stop pursuing legal action against Ripple and XRP. After more than four years of litigation, this could bring an end to the appeals process. However, Ripple would also have to agree.

Ripple’s cryptocurrency, XRP, experienced a temporary ten percent price jump yesterday – the markets are celebrating the news that the US Securities and Exchange Commission (SEC) is dropping its appeal. Ripple CEO Brad Garlinghouse announced the breakthrough via X.

“As many know, the SEC sued Ripple a good four years ago. (…) It’s over,” said a visibly cheerful Garlinghouse. Ripple’s general counsel, Stuart Alderorty, wrote on X that they are now examining how to proceed with their own cross-appeal against the SEC. What may sound like a minor matter could, however, become complicated.

The SEC’s willingness to reach a peace agreement had already been indicated in recent weeks. But the devil is in the details, as attorney Jeremy Hogan emphasizes again on X. Because now the ball is in Ripple’s court. The XRP company responded to the SEC’s appeal in October 2024 with a so-called cross-appeal , and this is still valid. The question now is whether the crypto company will also back down. In that case, the most recent ruling in the mammoth trial from August 2024 would remain decisive, according to Deaton.

XRP injunction from 2024 continues to worry Ripple

This ruling, named after Judge Torres in the crypto community, stipulates a fine of $125 million for Ripple. Torres ruled that teh crypto company had illegally sold XRP directly to institutional investors, thereby violating securities laws. At the same time, she issued an injunction (“injection”) prohibiting Ripple from selling XRP to such institutional investors. Ripple could easily absorb the fine, but the injunction would, for example, hinder the crypto company’s stock market plans .

Hogan, who has followed the case from the beginning, now sees four possible scenarios. First: Ripple maintains its cross-appeal with the hope that the appeals court will provide clarity on the tricky question of whether XRP can be classified as an investment in Ripple in an institutional setting.

Second: Ripple also abandons its lawsuit and, together with the SEC, attempts to modify the 2024 XRP ruling. This could happen with the help of Judge Torres, or – third – in the form of an out-of-court settlement. And the supposedly simplest fourth option: Ripple pays the $125 million and lives with the existing judgment.

Crypto journalist Eleanor Terret has repeatedly demonstrated that she has well-informed sources in the SEC’s case against Ripple and XRP. She now also refers X to the preliminary injunction, which is the main issue. Terret suggests that the SEC and Ripple could agree on language emphasizing that crypto regulations in the US are changing rapidly at the behest of President Donald Trump, and the courts should also recognize this for XRP. This could potentially provide Judge Torres with the basis for lifting the preliminary injunction.

Conclusion: Ripple celebrates SEC concessions – XRP pumps

Even before yesterday, XRP was the prominent altcoin that, alongside Bitcoin, benefited most significantly from Trump’s election victory. From a price of around $0.50 on November 5, 2024, XRP has shot up to around $2.50 today.

In order to pursue its future plans unhindered, a final, court-approved deal with the SEC would be ideal for Ripple. Discussions are likely already underway in the background, with the SEC and Ripple exploring how to eliminate or put on hold the more than just annoying one-part injunction against XRP.

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