Ripple Withdraws Appeal Against SEC

Ripple has agreed to withdraw its counter-appeal against the U.S. Securities and Exchange Commission (SEC) as the legal battle with the regulator concludes.

The final crossing of t’s and dotting of i’s – and what should be my last update on SEC v Ripple ever…

Last week, the SEC agreed to drop its appeal without conditions. @Ripple has now agreed to drop its cross-appeal. The SEC will keep $50M of the $125M fine (already in an…

— Stuart Alderoty (@s_alderoty) March 25, 2025

“Last week, the SEC agreed to withdraw its appeal without any conditions. Now Ripple has decided to drop its counterclaim,” wrote the firm’s chief legal officer, Stuart Alderoty.

In December 2020, the SEC filed a lawsuit against Ripple, accusing the company of selling unregistered securities in the form of XRP worth $1.3 billion. Defendants in the case also included Garlinghouse and co-founder Chris Larsen.

In July 2023, Judge Analisa Torres of the Southern District of New York ruled that programmatic sales and other distributions of Ripple’s token did not constitute an offer and sale of investment contracts. However, according to the decision, sales of the coins to large players violated securities laws.

The court dismissed the SEC’s interlocutory appeal, finding insufficient evidence and determining that its consideration would not “significantly advance the ultimate termination of the litigation.”

Subsequently, the Commission withdrew its lawsuit against Garlinghouse and Larsen. The parties reached a settlement, eliminating further charges on previous grounds.

In August 2024, Judge Torres issued a final ruling in the case, fining Ripple $125 million. The regulator had initially demanded $2 billion. In October, the SEC challenged the verdict.

Following this, the agency took steps to review earlier court decisions regarding the erroneous application of the law. The Commission proposed revisiting offers and sales of XRP on digital asset platforms, the involvement of Garlinghouse and Larsen, as well as token distributions “in exchange for consideration other than cash.”

“The SEC will retain $50 million of the $125 million fine (already deposited in an interest-bearing account), and the remainder will be returned to Ripple. The agency also asked the court to lift the standard injunction previously imposed at its request,” Alderoty explained.

According to him, further actions in the case depend on the results of “the Commission’s vote, the drafting of final documents, and routine court processes.”

As reported, the SEC also preliminarily agreed to withdraw the lawsuit against ConsenSys, cease the investigation into Uniswap Labs, and drop claims against the crypto division of online broker Robinhood.