After a four-year-long litigation tug of war, Ripple is finally turning the page.
On June 27 Eastern Time, Ripple CEO Brad Garlinghouse announced on the X platform that the company will withdraw its cross-appeal with the U.S. Securities and Exchange Commission (SEC), and the SEC is also expected to withdraw its remaining appeal requests. This lawsuit, which began in late 2020 and was at the core of the cryptocurrency industry's regulatory dispute, has finally come to an end.
Garlinghouse said directly: "We are completely ending this chapter and focusing on what truly matters - building the 'value internet'."
Why was this lawsuit so important? How did Ripple "fight" and "build" over nearly 5 years? What stage has the XRP ecosystem reached now? This article will systematically explain.
Long Litigation Path: Timeline Review
The legal dispute between Ripple and the SEC began in December 2020, with the SEC accusing Ripple and its executives of illegally raising over $1.3 billion through unregistered XRP sales. This lawsuit directly impacted XRP's trend.
December 21, 2020: SEC filed a lawsuit against Ripple Labs and its executives.
2021-2022: Both parties entered the legal evidence stage, with Ripple questioning the SEC's allegations, and the court allowing Ripple to obtain internal SEC documents (such as "Hinman emails").
July 13, 2023: Landmark ruling by Judge Analisa Torres of the Southern District of New York:
Programmatic sales of XRP (such as through exchanges) are not considered securities.
Institutional XRP sales were deemed unregistered securities issuance.
October 3, 2023: SEC's request to appeal the programmatic sales ruling was rejected.
October 19, 2023: SEC withdrew charges against Ripple executives Brad Garlinghouse and Chris Larsen.
March 2024: SEC sought nearly $2 billion in fines.
August 7, 2024: After months of negotiations, the court ultimately ruled that Ripple must pay $125 million in civil penalties, XRP is not considered a security in most transactions, and Ripple is permitted to continue operations under clear legal conditions.
March 2025: Ripple and the SEC began final negotiations, proposing to reduce the fine to $50 million and remove restrictions on XRP sales, but the judge formally rejected this request on June 26.
June 26, 2025: Brad Garlinghouse confirmed Ripple's withdrawal of cross-appeal, with the SEC expected to withdraw its lawsuit, marking the end of years of legal battle.
What Did Ripple Win?
This lawsuit has profound significance for Ripple, XRP, and the entire crypto industry. We can summarize it simply as:
Item | Result |
Programmatic Sales (Exchanges) | Clearly Not Securities |
Institutional Sales | Considered Securities Issuance, Civil Liability Applies |
Ripple Executive Responsibility | All Charges Withdrawn |
Final Fine | Set at $125 million, Ripple Has Paid $50 million |
Legal Status | XRP's Position Clear in Mainstream US Trading Scenarios |
The SEC won on the institutional sales classification but lost in retail exchange sales. This is crucial for XRP's liquidity and market acceptance.
Garlinghouse commented precisely: "XRP's legal status hasn't changed - it's not a security."
Beyond the Lawsuit, Ripple's Ecosystem Hasn't Stopped
While dealing with the lawsuit, Ripple's ecosystem expansion never paused:
1. Integration with Wormhole for Cross-Chain Interoperability
Ripple partnered with Wormhole as a cross-chain bridge for XRPL and its EVM sidechain, enabling users to freely transfer assets between XRPL, Ethereum, Solana, and other chains. This is a massive boost for DeFi and RWA applications.
2. Compliant DEX Emerges
In XRPL's latest 2.5.0 upgrade, Ripple introduced a "Permissioned DEX" feature, allowing only KYC-verified users to trade, laying the groundwork for future MiCA compliance, stablecoin circulation, and enterprise-level trading.
3. Introducing Permission Delegation Mechanism
Developers can authorize account operation permissions to other accounts, enabling more complex automated operation scenarios like enterprise asset management, compliant stablecoin issuance, and MiCA regulation adaptation.
4. Expanding Stablecoins and RWA
Circle's USDC has been integrated into XRPL. Ripple also collaborated with Guggenheim to issue the first digital commercial paper. Additionally, Ondo Finance launched OUSD, a tokenized US Treasury product on XRPL, expanding Real World Assets (RWA) applications.
Moreover, the European Central Bank is testing Axiology, a private chain transaction system built on XRPL source code. Although not running on the public XRPL mainnet, this represents sovereign-level institutional recognition of XRPL technology.
How Will the Market Price XRP Post-Litigation?
Despite continuous positive fundamentals, XRP has been oscillating between $2.00 and $2.60 since early March, without a clear directional bias.
Crypto analyst XForceGlobal noted that XRP recently pulled back to $1.90 and again tested the key 0.618 Fibonacci level near $2.00. His Elliott Wave analysis predicts XRP could break through to $5. In earlier posts, XForceGlobal even set the target for this cycle between $20 and $30.
From a technical chart perspective, if XRP price effectively breaks through the current consolidation zone's upper limit of $2.65, it will open a channel for the next stage of growth, potentially first targeting $3 and above, and even possibly reaching $14 based on the measurement of the breakout pennant formation.
As the shadow of the SEC lawsuit gradually dissipates, Ripple has been able to shed its burden and fully invest in its vision of "building an internet of value". The advancement of strategic acquisitions, continuous upgrades to XRPL technology, and the growing institutional market interest in XRP collectively constitute a strong fundamental basis for XRP's future rise. The market will be watching to see if Ripple can seize this opportunity to reshape its value.
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