Key Takeaways
- Ripple and the SEC dismissed their appeal, ending one of the most protracted legal battles in the crypto world.
- Both sides will drop further legal action and cover their legal expenses.
- Judge Torres previously rejected Ripple and the SEC’s joint request to lift a permanent injunction and reduce Ripple’s penalty.
After nearly five years of courtroom battles, surprise rulings, and shifting political winds, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have finally agreed to call it quits.
Both sides have dropped their respective appeals, ending one of the crypto industry’s most closely watched and longest-running legal fights.
The settlement slashes Ripple’s penalty and removes the court-imposed restrictions on its business, effectively closing the chapter on a high-profile clash that has shaped the conversation around digital asset regulation.
Ripple and SEC Close XRP Case With Mutual Appeal Withdrawal
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have jointly agreed to withdraw their appeals, formally concluding their long-running legal dispute over XRP.
The joint filing in the U.S. Court of Appeals for the Second Circuit confirms that both sides will drop further legal action and cover their own legal expenses.
This effectively ends a lawsuit that has become a landmark case in crypto regulation.
At the heart of the case was the SEC’s assertion that Ripple and its top executives—CEO Brad Garlinghouse and co-founder Chris Larsen—illegally sold XRP as an unregistered security.
Ripple rejected the claim, arguing that XRP functions as a digital asset rather than a security.
Ripple’s Chief Legal Officer, Stuart Alderoty, said on X, “Following the Commission’s vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals. The end…and now back to business.”
Ripple’s CEO, Brad Garlinghouse, didn’t comment on the news, while legal expert Jeremy Hogan posted a video celebrating the end of the case.
Judge Torres Rejects Ripple and SEC’s Bid
U.S. District Judge Analisa Torres has denied the SEC and Ripple’s joint request to erase key parts of last year’s final judgment, including a permanent injunction and a $125 million civil penalty against the crypto company.
Ripple and the SEC had hoped to wrap up their years-long legal battle with a settlement that would reduce the fine by more than half and lift the injunction that prevents the blockchain company from continuing the kind of institutional XRP sales that Judge Torres previously ruled were illegal.
They also tried to argue that the public interest in keeping these restrictions had diminished since the original ruling, pointing to changes in SEC leadership and shifting enforcement priorities.
However, the judge made it clear that private agreements don’t override public consequences.
“The parties do not have the authority to agree not to be bound by a court’s final judgment,” she wrote in the June 26 decision, adding that the deal “does not come close” to meeting the high bar required to vacate a judgment based on public interest grounds,” she said.
Torres also called out the inconsistency in the SEC’s position.
She reminded the agency of its own past words, when it argued that Ripple’s actions were so “egregious” and “reckless” that a billion-dollar penalty and a permanent injunction were justified.
Less than a year later, both sides want to reverse course, and the judge isn’t buying it.
Torres said that if Ripple and the SEC want to move on, they have two options.
Either formally drop their appeals and accept the ruling as-is, or go through the full appeals process to challenge it.
What they can’t do, she stressed, is cut a private deal and expect the court to rubber-stamp it.
What Happens Next: Appeals, Settlements, and Industry Reactions
Most likely, Ripple and the SEC will now quietly settle the appeal without any further court drama.
Legal experts like Fred Rispoli say both sides will probably agree to the reduced fine ($50 million) while keeping Judge Torres’s injunction intact.
That means Ripple will still be barred from conducting unregistered institutional sales of XRP like it did in the past, but there won’t be any immediate impact on XRP’s status in secondary markets or its ETF prospects.
Importantly, the injunction only really matters if the SEC chooses to enforce it.
In practice, that means the agency would have to go back to court and argue that Ripple is violating it, something experts say is unlikely under a more crypto-friendly commission.
Rispoli noted that the injunction is “just a piece of paper” unless the SEC wants to act on it.
There’s also a lot of speculation that the SEC may quietly signal to Ripple that it’s free to continue doing business, as long as it avoids the kind of institutional sales structure that led to the original violation.
Ripple’s own legal team seems to be hinting at that too.
General Counsel Stuart Alderoty recently referred to the disputed sales as “historic institutional sales,” suggesting the company considers that chapter closed.
Ripple, SEC Legal War Over?
On May 8, the SEC announced it had reached a settlement with Ripple Labs and its top executives, CEO Brad Garlinghouse and co-founder Chris Larsen.
The deal aimed to finally close the book on the SEC’s 2020 lawsuit, which accused Ripple of illegally selling XRP without registering it as a security.
Under the proposed agreement, $125 million in escrowed funds would be split: $50 million would go to the SEC, with the rest returned to Ripple.
Both sides agreed to drop their appeals, if the court signed off on removing a previous injunction. The SEC framed the settlement not as a concession, but as part of a broader pivot in its crypto enforcement strategy.
SEC’s Crenshaw Unhappy With the Outcome
While the crypto industry largely welcomed the SEC’s surprise settlement with Ripple, not everyone at the agency agreed with the move.
Commissioner Caroline A. Crenshaw issued a sharply worded dissent, criticizing the deal as a “tremendous disservice to the investing public” and a blow to the SEC’s credibility.
“This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws,” Crenshaw said.
Crenshaw took particular issue with the decision to unwind both the $50 million civil penalty and a previously imposed injunction, calling it a retreat from the agency’s own legal victory.
“It razes the civil penalty ruling as well as the court-imposed injunction,” she said, noting that the settlement prohibits either party from challenging the original summary judgment.
She also argued that the agreement “subverts the clear and honest application of the facts to the law” and warned that it would send a confusing message to markets and investors. “It creates more questions than answers,” she added.
Crenshaw’s strongest language came in her final remarks, where she suggested the SEC had dropped the case to avoid a possible appellate ruling that would affirm its previous arguments, at odds with what she described as a new internal push to scale back crypto enforcement.
“I cannot support our settlement,” she concluded. “I urge the courts to take a long, hard look at the Commission’s attempt to claw back the meritorious claims it previously made, and gut its own enforcement program from the inside out.”
SEC Drops Case Against Ripple
On March 19, Ripple CEO Brad Garlinghouse announced that the SEC officially dropped its long-running lawsuit against his company.
“I’m finally able to say this case is over,” Garlinghouse stated in a video address. “Looking back, it’s clear this lawsuit was flawed from the start.”
Under Acting Chairman Mark Uyeda, the SEC marked its shift in stance on crypto, withdrawing from over 10 major enforcement cases, including those involving Coinbase, Uniswap Labs, and Kraken.
“Today marks a victory and a long-overdue retreat by the SEC,” Garlinghouse said, criticizing former Chairman Gary Gensler’s aggressive approach.
“They weren’t protecting investors—they were using fear and intimidation against the entire industry,” the Ripple CEO added.
SEC Removes Case From Website
The SEC had seemingly removed references to its ongoing lawsuit against Ripple from its website as the case moved to the Court of Appeals for the Second Circuit.
While some in the crypto community interpreted this as a sign that the years-long legal battle was nearing its end, others cautioned against reading too much into it.
One user on X dismissed the significance, stating, “The SEC website does not matter.”
Despite its removal from the SEC’s site, the case remains active in the nationwide PACER system.
An X user claiming to be an attorney confirmed this, saying, “I just logged in. The last entry is Ripple’s request for a time extension to file its brief. The case status is still shown as ‘Active.’ That may change soon.”
Meanwhile, another user clarified, “This is incorrect; they just moved it to the appeals section.”
With the case now under appellate review, the SEC’s decision to remove it from its website raises questions about its messaging strategy, but the legal battle is far from over.
Better Markets Backs SEC
Better Markets, a non-profit financial markets organization, filed an Amicus brief supporting the SEC in its case against Ripple Labs.
The brief outlined three arguments, asserting that XRP sales meet the Howey test criteria for securities.
It claimed that XRP transactions with retail investors should still qualify as securities, directly challenging the district court’s earlier ruling in favor of Ripple.
According to the filing, the decision contradicts statutory definitions and the Supreme Court’s interpretation of what constitutes an investment contract.
Better Markets also argues the court ignored the economic realities of XRP sales and urged a reversal of the decision on XRP retail transactions.
Attorney Jeremy Hogan weighed in on X, sharply criticizing the amicus brief. “Better Market’s Amicus Brief was hard to read,” he wrote. “Not because I don’t think this case will ever reach the appellate court, but because it completely misses (or misconstrues?) what the Trial Judge ruled.
Hogan explained that the district court judge didn’t reject the classification of XRP sales on exchanges as securities simply because buyers didn’t transact directly with Ripple.
Instead, the judge’s ruling focused on nuanced applications of the facts to securities law—a distinction Hogan felt the brief failed to address.
“This brief doesn’t tackle the main issue head-on, and that is very frustrating,” Hogan added. “Better Markets doesn’t like this application of the facts to the law, but instead of addressing either one directly, it simply argues that the outcome is wrong and that the SEC won’t be able to protect us from ourselves if this decision is upheld.”
XRP Still a Security
The U.S. SEC has officially filed an opening brief in its appeal against Ripple.
The SEC argued in its brief that Judge Analisa Torres’s 2023 ruling should be dismissed, asserting that XRP transactions are unregistered securities subject to regulation.
It claimed Ripple’s $2 billion XRP sales to retail investors violated federal securities laws and cited three precedents to argue it need not prove investors’ intentions.
Instead, the agency emphasized its mandate to enforce preventive measures for investor protection and criticized the district court’s focus on the seller’s identity.
The SEC also challenged the court’s distinction between institutional and retail investors, stating it undermines the Howey test’s objective criteria for defining investment contracts.
Ripple Optimistic
Pro-crypto attorney Jeremy Hogan criticized the SEC’s brief, calling it a futile effort by outgoing SEC Chair Gary Gensler.
Hogan likened the appeal to a pointless exercise, remarking, “Half the brief was spent just reiterating what the trial court ruled. It’s like trying to talk a girl into going out with you and spending half your time telling her why she said ‘no’ previously.”
Ripple’s Chief Legal Officer, Stuart Alderoty, agreed, dismissing the SEC’s arguments as a rehash of previously rejected claims.
Alderoty expressed confidence that the appeal would likely be dropped under the next administration, highlighting Ripple’s optimism about the future.
“We’ll respond formally in due time. For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving,” Alderoty commented.
Crypto Dad Predicts End to Ripple vs SEC
Giancarlo, a fierce critic of Gensler, said in a recent interview that he believed the SEC would drop its case against Ripple Labs once the chairman had been replaced.
When questioned about the topic, Giancarlo said, “I think they should and will. I would bet they would.”
“I would recommend that it’s time for regulatory agencies to drop a lot of these cases where they’ve lost at the trial court,” Giancarlo added.
Known in the industry as “Crypto Dad,” Giancarlo played a significant role in SEC Chairman Gensler’s departure, labeling his enforcement actions counterproductive and lacking nuance.
Giancarlo, former chairman of the Commodity Futures Trading Commission (CFTC) until 2019, claimed the SEC lacked talent.
“Talent has left. What’s left are dead-enders, people who don’t want to come to the office,” he said.
Gensler To Leave Before Court’s Deadline
Gensler, the SEC chair who has been a driving force behind the agency’s aggressive pursuit of the crypto industry, will resign on Jan. 20, when President-elect Donald Trump takes office.
The timing of Gensler’s departure coincidentally comes just five days before a pivotal deadline in the SEC’s closely watched case against Ripple Labs.
On Jan. 15, the U.S. Court of Appeals instructed the SEC to finalize its briefs in the ongoing appeal of a lower court ruling that partially vindicated Ripple.
It’s likely that, with Gensler’s departure, the case could come to an end.
Court Gives SEC January Deadline
The U.S. Court of Appeals for the Second Circuit has issued a stern ultimatum to the Securities and Exchange Commission (SEC), now ordering the SEC to present its final arguments by Jan. 15, 2025.
The court will then deliberate on motions to either dismiss the case or proceed with specific parts of it.
This decisive step comes after a prolonged legal battle marked by intense arguments and evidentiary clashes over XRP’s legal status and the SEC’s authority to enforce securities laws within the crypto industry.
Ripple’s legal team has consistently argued that the SEC’s approach lacks clarity and that XRP does not meet traditional security criteria.
After the news, the XRP price didn’t move notably, as it was down by 0.1% to $0.5187 from the day before.
Ripple Files Its Appeal
Ripple is challenging four key issues raised by the SEC, including the legally binding nature of an investment contract, the classification of institutional XRP sales, the fair notice defense, and the validity of the injunction.
Ripple’s CEO, Brad Garlinghouse, and Chief Legal Officer, Stuart Alderoty, have expressed confidence in their chances of winning the appeal.
They argue that the SEC’s case is weak, particularly in light of the court’s previous ruling affirming XRP’s non-security status.
However, the SEC’s recent request for an extension to file its principal brief has raised questions about the agency’s confidence.
This development suggests that the SEC may be facing challenges in formulating a strong argument to support its appeal.
Extra Time Filing
In a rare occurrence, the SEC failed to meet the Oct. 16 deadline to file its objections with the Second Circuit Court, sparking confusion and optimism among observers.
The development had fueled speculation that the agency might be nearing a settlement with Ripple.
However, those hopes were short-lived.
On Thursday, Oct. 17, the SEC filed its Form C, outlining the grounds for its appeal and likely pushing the case into 2025.
The appeal centers on several key issues, including Ripple’s programmatic sales of XRP on digital asset trading platforms, the alleged aiding and abetting of these sales by Ripple’s executives, and Ripple’s distribution of XRP to employees.
The SEC is seeking to overturn Judge Torres’s ruling that these activities do not constitute securities violations.
Notably, the SEC is not contesting the $125 million penalty Judge Torres imposed on Ripple, nor is it challenging her decision to deny disgorgement.
Instead, the agency is focused on establishing a precedent that would allow it to regulate similar activities in the future.
With the appeal now formally lodged, the case is set to drag on, leaving the crypto industry wondering what’s next.
Ripple Executives Reactions
The SEC’s late filing has drawn swift responses from Ripple’s top executives.
They criticized the regulator’s actions, accusing it of making up the rules as it goes along.
Brad Garlinghouse, Ripple’s CEO, didn’t mince words, saying the SEC’s appeal is “proceeding normally for an agency that makes up their own rules as they go!”
Stuart Alderoty, Ripple’s chief legal officer, was more measured in his response but still emphasized that the court’s earlier ruling stands.
“No surprises here — once again, it has been made clear. The Court’s ruling that “XRP is not a security” is NOT being appealed. That decision stands as the law of the land. Stay tuned for Ripple’s Form C to be filed next week.”
SEC Misses Deadline
Following its notice on Oct. 2, the SEC had a 14-day window to file Form C and Form D, with a deadline set for Oct. 16.
Contrary to speculation, the Columbus Day holiday on Monday, Oct. 14, did not extend the deadline.
Unlike business days, court deadlines include weekends and holidays unless the court specifies otherwise.
Despite being on time for every filing, the SEC surprised everyone by missing this crucial deadline.
Form C is necessary to appeal the court’s decision. Failure to file it on time may result in the appeal being dismissed.
However, there is some confusion over the deadline date.
Some suggest that the deadline is Oct. 18, considering the SEC’s notice was docketed on Oct. 4 in some court systems.
New Timeline
Once the parties agree on a briefing schedule, the SEC will have 90 days to submit its legal brief outlining its arguments against Judge Torres’s decision.
Ripple will then have an opportunity to respond and file its brief, setting the stage for a protracted legal battle that could drag on until July 2025.
Crucially, the SEC has yet to specify which aspects of Judge Torres’s ruling it will challenge, details that will only become clear with the filing of Form C today.
Legal experts predict that the appellate court’s decision could come as early as 2026, although a settlement remains a possibility, particularly under a pro-crypto administration.
Many XRP enthusiasts believe that a settlement is more likely to occur under a president like Donald Trump, who has been seen as crypto-friendly.
Ultimately, the duration and outcome of this legal battle remain shrouded in uncertainty, dependent on the actions of both parties and the appellate court.
Ripple Challenges SEC With Cross-Appeal
Ripple Labs has filed a notice of cross-appeal in its ongoing tussle with the SEC, which aims to address all aspects of the case and eliminate any remaining ambiguities.
The cross-appeal is in response to the SEC’s appeal of Judge Analisa Torres’s August ruling. The ruling found that XRP sales to institutional clients violated U.S. securities laws and imposed a $125 million civil penalty on Ripple.
However, Judge Torres’s ruling also stated that XRP sales on exchanges and other public markets were not securities.
Stuart Alderoty, Ripple’s Chief Legal Officer, expressed confidence in the company’s position, stating that the SEC’s grounds for appeal are weak. He argued that the SEC’s decision to appeal reflects its loss on all key points of the case.
Alderoty emphasized that Ripple’s cross-appeal aims to ensure that all aspects of the case are addressed and that there are no remaining ambiguities.
He also highlighted the SEC’s previous decision not to appeal the ruling that XRP is not a security, further supporting Ripple’s position.
SEC Appeal’s Judge Torres XRP Ruling
The SEC’s surprise filing leaves room for interpretation, as the agency failed to specify which aspects of Judge Torres’s July ruling it intends to challenge.
The ambiguity has sparked intense speculation, with some wondering if the regulator is seeking to reverse the $125 million fine Ripple was ordered to pay or if it will target the court’s more significant pronouncement: that programmatic sales of XRP to retail customers do not constitute a securities transaction.
According to Kroll, a source close to the matter has shed some light on the filing, but a definitive explanation remains elusive.
As the appeal unfolds, market observers are closely watching the developments, aware that the SEC’s move could establish a crucial precedent for the regulation of digital assets under U.S. securities law.
At the heart of the debate is a complex and nuanced understanding of crypto transactions, which, as the initial ruling made clear, are subject to scrutiny not because of the tokens themselves but because of the nature of the transactions in which they are involved.
Potential Timeline of SEC Appeal
If the SEC’s decision to appeal the Ripple ruling has brought a sense of déjà vu for the embattled company, the timeline of what’s to come may only add to the feeling of Groundhog Day.
As the months drag on, the following scenario may unfold, sparking another protracted fight between the two parties.
The SEC is expected to file its main brief by early January 2025, although the agency will likely utilize the allowed 30-day extension, nudging the deadline into the New Year.
Ripple, never one to shy away from a fight, will almost certainly cross-appeal, with its opening brief landing around the same time. The company’s Chief Legal Officer, Stuart Alderoty, announced they will certainly retaliate.
The opposition briefs will follow in short order, first due by early February 2025, before Ripple takes its own 30-day extension, pushing the deadline into early March. The reply briefs are then expected to surface by the end of March 2025, marking the final round of written arguments.
Only then will the stage be set for an oral argument, which could take place as early as September or October 2025. It’s likely to be a closely watched showdown, with representatives from both sides vocally defending their positions.
Finally, after months of anticipation, a ruling from the 2nd Circuit Court of Appeals will bring the proceeding to a close.
However, it’s a moment that’s still a good 18 months away, with the most optimistic forecast suggesting January 2026. Realistically, though, many are bracing for a decision that won’t surface until March or April 2026, casting a long shadow over Ripple’s continued operations.
The SEC’s Appeal
The battle between Ripple and the SEC ended with a sizeable fine of $125 million for the crypto firm, but the judgment, arguably, has gone in Ripple’s favor.
Whilst the SEC has 60 days to appeal the court decision, Garlinghouse is confident that the strength of the ruling is undeniable. Speaking at Korean Blockchain Week 2024 in South Korea, he stated:
“Regardless of whether they choose to appeal, we do not see any credible path for the SEC to challenge the core ruling, which is that XRP is not, in and of itself, a security.”
There are concerns that the XRP token itself could take a sizeable hit if the SEC seeks to challenge the court’s $125 million penalty for Ripple, though it remains unclear if the SEC is willing to take that bet after a grueling four-year legal battle.
The regulator has until Oct. 6 to appeal the decision. If it does, the case could drag on into 2025.
There are also rumors suggesting that Ripple has already paid the fine, which it was required to do within 30 days of the ruling. If true, the payment could suggest an ‘official’ closure of the legal battle.
The Case Is Over?
District Judge Analisa Torres delivered a decisive blow to the SEC by reducing the penalty in the Ripple Labs case by 94%. The court partially granted the SEC’s motion for relief, imposing a civil penalty of $125 million instead of the $2 billion initially sought.
“This is a victory for Ripple, for the industry, and for the rule of law. The SEC’s obstacles against the entire XRP community are gone,” said Ripple’s CEO, Brad Garlinghouse.
The SEC had aimed for three primary remedies: a permanent injunction restraining Ripple from further violations of Section 5 of the Securities Act, restitution of $876.3 million with $198.2 million in pre-judgment interest, and a civil penalty equal to the restitution amount.
Ripple successfully argued against the SEC’s requests, asserting that such a large injunction and restitution were unwarranted and that any civil penalty should be significantly lower, not exceeding $10 million.
The SEC’s motion for relief and entry of final judgment was granted in part and denied in part.
Ripple’s argument led to a significantly reduced penalty. The court’s ruling also prohibits the company from further securities law violations, marking an important win for Ripple and the broader crypto community.
Not Securities Transactions
Judge Analisa Torres had previously ruled that XRP sales on secondary markets did not constitute securities transactions, leaving the fine for initial sales to professional investors as the remaining issue.
Although substantial, the fine was considered relatively small by the markets. This led to an 18% rise in XRP to $0.6075, signaling market relief after the prolonged legal battle.
Wednesday’s order follows the judge’s July 2023 decision, which concluded that Ripple violated federal securities laws by selling XRP directly to institutional customers.
However, Ripple’s programmatic sales of XRP to retail customers through exchanges were deemed not to violate securities laws. The SEC’s attempt to appeal this part of the ruling was unsuccessful.
Judge Torres’ decision has broad implications for the cryptocurrency market and digital asset regulation.
The clarity on institutional transactions could encourage more institutional participation in the cryptocurrency market. Meanwhile, the unresolved issue of sales to retail investors remains a key concern for Ripple and the industry as a whole.
Ripple, SEC Rumored to Meet
In a notice on the SEC website, the agency has confirmed that Commissioners will meet to discuss the settlement and resolution of an unnamed enforcement action.
While images circulated on X imply that the meeting will address the Ripple litigation, such events are frequent, and neither party has confirmed whether they are in settlement talks.
Nonetheless, CEO Brad Garlinghouse’s recent comments have hinted that a deal could be close. Although he refused to be drawn on whether settlement talks were underway, he said there is “one final piece” that needs to be dealt with, but that he “[expects] a resolution very soon.”
Ripple CEO Hints at Imminent Resolution in SEC Lawsuit
In a recent interview, Garlinghouse revealed that Ripple has spent over $150 million on legal fees during its three-year battle with the SEC, stating that such expenditure is unsustainable for every token.
He emphasized the case’s importance for the broader cryptocurrency industry and reiterated Ripple’s commitment to pushing for regulatory clarity. Garlinghouse also stressed that cryptocurrency should not be a partisan issue in the U.S., acknowledging that there is legislative momentum across the political spectrum.
The Ripple CEO criticized the current U.S. approach to cryptocurrency regulation, calling it “frustrating” and criticizing the SEC’s ongoing legal actions against the industry.
He argued that SEC Chair Gary Gensler seems “at war” with crypto, with the agency continually expanding its legal team to initiate more lawsuits. Garlinghouse advocates for regulation that does not rely solely on enforcement, noting that most players in the crypto industry are willing to comply with clear, fair regulations.
Ripple’s XRP token saw a significant price rally earlier this week, fueled by settlement rumors, but the gains were short-lived following news that a private meeting between Ripple and the agency was reportedly canceled. On July 22, at the time of writing, the price hovered around $0.6.
SEC’s Overreach Challenged: SolarWinds Case a Setback
The SEC recently suffered a notable courtroom defeat that has caught the attention of cryptocurrency market enthusiasts, particularly during the ongoing XRP lawsuit. This setback occurred when a federal judge dismissed the SEC’s efforts to regulate corporate cybersecurity measures in its case against SolarWinds. The decision, celebrated by critics of the SEC, underscores the broader implications for regulatory oversight.
Among the vocal critics is James Murphy, known as MetaLawMan on the social platform X, who sharply criticized SEC Chair Gary Gensler. This judicial loss for the SEC adds another layer of complexity and scrutiny to its actions, especially relevant in its legal battles with entities in the cryptocurrency sector.
Murphy’s criticism echoes sentiments prevalent among many in the XRP community, who have long criticized the SEC’s regulatory tactics. The XRP lawsuit remains a focal point of discussion, with widespread speculation about its potential outcomes and the possibility of a settlement.
SEC Delays Key Meeting Amidst Ripple Case and ETF Approvals
On July 18, anticipation of a settlement between the SEC and Ripple briefly sent XRP prices higher. However, hopes were quickly dashed when the SEC canceled a private meeting with Ripple, causing XRP to drop by 3.82%.
The meeting was supposed to cover settlements, enforcement actions, and litigation claims. With it canceled, investors wonder if the Ripple vs. SEC case will soon be resolved.
The XRP community had high hopes for this meeting, anticipating it could lead to a settlement in Ripple’s longstanding legal battle with the SEC. The optimism had persisted despite previous meetings—150 in total—not leading to any resolution. The Federal Register and the SEC did not provide specific reasons for the cancellation. Still, market speculation was rife that it could be connected to the forthcoming approval and trading of Ethereum ETFs scheduled to begin on July 23.
The meeting, as per the SEC’s Sunshine Act notice, was to cover important topics, including the settlement of administrative proceedings, injunctive actions, and resolving litigation claims. The mention of settlement discussions specifically raised expectations among XRP enthusiasts that an agreement with Ripple might be on the horizon.
Opinions on the SEC’s motives are mixed. Yassin Mobarak of Dizer Capital hinted at the possibility of a looming settlement. In contrast, former SEC attorney Marc Fagel expressed skepticism, pointing out that similar speculations in the past have often led nowhere.
In a recent interview, Ripple CEO Brad Garlinghouse shared his optimism about an impending resolution in the ongoing legal dispute with the SEC. However, he was unable to provide specific timelines.
He said:
“We expect a resolution very soon, but can’t predict exactly when the judge will rule there.”
Garlinghouse Criticizes SEC Chair at Crypto Roundtable
Amid broader efforts to align the cryptocurrency space with White House policies, Garlinghouse has publicly criticized the United States Securities and Exchange Commission (SEC) chair, Gary Gensler, highlighting the ongoing tensions between the digital asset industry and government regulators.
The Ripple CEO attacked the SEC for its regulatory overreach and failure to establish clearer guidelines. He argued that the regulator’s approach to regulating the crypto landscape has stifled innovation and proved ineffective.
Garlinghouse’s latest remarks exemplify the escalating tension between the cryptocurrency industry and Washington regulators. His comments followed a roundtable discussion organized by U.S. Representative Ron Khanna, featuring notable figures from the industry and various members of Congress, including Kirsten Gillibrand and Joe Neguse.
Other participants included Billionaire Mark Cuban, Coinbase’s Chief Legal Officer Paul Grewal, and Circle’s Chief Strategy Officer Dante Disparte.
During the discussion, Garlinghouse criticized SEC Chairman Gary Gensler and attributed the growing interest in cryptocurrencies among Republicans to the perceived hostility from the Democratic Party. His critique underscored the broader debate over regulatory overreach and the need for clear guidelines in the crypto space.
While appreciating the roundtable discussion as a significant step forward for the cryptocurrency industry, Garlinghouse expressed regret over the persistent support of most Democrats for SEC Chairman Gary Gensler’s approach to crypto regulation.
According to Garlinghouse, this stance has continuously hindered American innovation. In stark contrast, the Republican Party has strongly supported the digital asset sector, emphasizing the growing political divide on cryptocurrency issues.
The Ripple CEO referred to Gary Gensler as a “Luddite,” suggesting the SEC chair resisted new technology. Garlinghouse believes Gensler’s skepticism is akin to trying to halt a tidal wave, ultimately driving innovation and opportunities away from the US. This is not Garlinghouse’s first criticism of Gensler’s regulatory approach. However, he hoped to “see action, and not just words.”
Coinbase CLO Highlights Need for Legislation over Litigation
During a recent roundtable discussion, Coinbase’s Chief Legal Officer, Paul Grewal, emphasized the importance of legislative action over continued litigation.
Grewal highlighted that the meeting aimed to advocate for clear, supportive laws for the cryptocurrency industry, reflecting the personal nature of policies to the 52 million Americans who have owned cryptocurrency.
He pointed out that many people, especially those from historically marginalized communities who are disproportionately unbanked or underbanked, view the administration’s opposition to their access to the financial system as a personal attack. Grewal expressed optimism, noting that the productive roundtable has renewed hope for positive change, underlining the bipartisan momentum around cryptocurrency.
Former White House Communications Director Anthony Scaramucci said he looked forward to “positive bipartisan legislation and regulation for digital assets and property.
SEC, Ripple, and Coinbase did not immediately respond to a request for comment.
Judge Jackson Dismisses Part of SEC’s Case Against Binance, Cites Lack of Evidence on BNB Sales
July 13 is a significant date for Ripple, marking the anniversary of Judge Torres’ crucial ruling that declared XRP not a security. This ruling dramatically influenced XRP’s market value, causing its price to double within hours and underscoring the influence of legal decisions on market dynamics. Fred Rispoli’s pinpointing of this date for the potential final verdict reflects a hopeful sentiment among Ripple supporters for a similarly favorable outcome.
However, Rispoli added that a pre-judgment settlement between the SEC and Ripple was unlikely, although some issues may still be open for negotiation.
Building on Judge Annalisa Torres’ precedent, Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia has partially dismissed the SEC’s charges against Binance regarding BNB sales on the secondary market. Judge Jackson ruled that the SEC failed to provide sufficient facts showing that secondary market sales of BNB tokens on crypto exchanges constituted securities transactions. The court also rejected the SEC’s claim that Binance’s fiat-backed stablecoin, BUSD, qualifies as an investment contract.
Judge Jackson emphasized that addressing the digital asset industry on a “case by case, coin by coin, court after court” basis results in inconsistent outcomes and ongoing ambiguity. This ruling references Judge Torres’ decision on the same date last year, which determined that XRP is a commodity when sold to the general public.
In her Summary Judgment, Judge Torres stated that Ripple’s Institutional Sales of XRP constituted the unregistered offer and sale of investment contracts, violating Section 5 of the Securities Act. This decision significantly impacted the Ripple community, triggering a surge in the XRP price by over 100%.
Following Judge Jackson’s decision, Ripple submitted a notice of supplementary authority, reinforcing the legal perspective on digital asset classification.
Recently, Coinbase and Ripple have emphasized the lack of clarity surrounding cryptocurrency regulation in filings submitted for their respective legal cases. Both companies argue that the ambiguous regulatory environment hinders their operations and creates legal challenges.
Coinbase and Ripple Highlight Regulatory Uncertainty in Recent Court Filings
Recently, Coinbase and Ripple have emphasized the lack of clarity surrounding cryptocurrency regulation in filings submitted for their respective legal cases. Both companies argue that the ambiguous regulatory environment hinders their operations and creates legal challenges.
In a court filing on July 2, Coinbase stated that Binance also supports the need for the SEC to engage in rulemaking regarding digital assets. Coinbase argued that rulemaking is essential because the SEC has adopted an unprecedented and extensive interpretation of securities laws, which it has never clearly explained but is now trying to enforce retroactively on the digital asset industry through aggressive enforcement actions.
Ripple also leveraged Binance’s recent legal victory to challenge the SEC’s inconsistent regulatory approach, arguing for the necessity of formal rulemaking. The notice underscored that intangible digital assets did not neatly fit into the Howey test framework, a seven-page opinion used to classify securities.
Ripple criticized the SEC’s reliance on court cases to regulate the industry, warning that this could lead to inconsistent results and unclear guidance for market participants.
SEC Emphasizes Fair Notice in Response to Ripple, Omits Discussion on Secondary Market Transactions
On July 3, the SEC countered Ripple’s notice of supplemental authority, which cited a recent Binance ruling to criticize the SEC’s “regulation-by-enforcement” approach and highlight a lack of regulatory clarity.
The SEC dismissed Ripple’s attempt to use the Binance case, with SEC’s Jorge Tenreiro calling it “completely irrelevant” to the current motion. The agency argued that Ripple omitted a crucial part of the Binance ruling, which rejected the fair notice defense, emphasizing that the SEC enforced a longstanding federal securities statute. The ruling also mentioned that the crypto industry had been notified by the SEC’s 2017 DAO report, predating most of Ripple’s XRP sales.
Former SEC official John Reed Stark described the Binance ruling as a significant loss for the exchange.
In its response to Ripple, the SEC focused on the fair notice aspect of the Binance ruling. In the filing, the SEC pointed out that Ripple omitted the relevant part of the Binance ruling, which rejected the fair notice defense, similar to this court’s previous decision.
Fair notice is a legal principle ensuring that individuals are adequately informed of any claims or legal actions against them, providing them with the necessary information and opportunity to respond or defend themselves.
Regarding fair notice, the SEC emphasized its position on having provided the necessary notice, asserting:
“Ripple’s latest letter entirely omits the one part of Binance that could conceivably have any relevance to the remedies motion. This is the portion of the ruling rejecting – like this court did – the argument that the fair notice doctrine provides a defense to liability.”
It added:
“The SEC put the industry on notice since the Jul 2017 DAO Report, which predated the overwhelming majority of Ripple’s sales at issue in this case.”
The SEC concluded that the Binance court noted the defendants were aware that the SEC could take action against them, similar to how Ripple had specific notice of the risks involved in its actions based on legal advice, yet chose to proceed.
While the SEC emphasized the fair notice aspect, it avoided addressing Binance Coin’s secondary market transactions and the Programmatic Sales of XRP ruling.
U.S. Court Dismisses SEC’s Major Claims Against Binance, Echoes Ripple Victory
In a pivotal decision for Binance, the U.S. District Court for the District of Columbia dismissed significant claims brought by the SEC against the exchange. Led by Chairperson Gary Gensler, the SEC filed a lawsuit in June 2023 accusing Binance of selling unregistered securities and operating unlawfully within the US.
The court’s ruling echoed Judge Torres’ landmark decision in the SEC vs. Ripple case. In July 2023, Judge Torres determined that Ripple’s XRP token sales on secondary trading platforms did not constitute offers of investment contracts. This rationale was crucial in rejecting the SEC’s argument that crypto tokens inherently qualify as investment contracts. Both cases underscore the importance of transactional context in assessing token classifications, challenging the SEC’s broad regulatory stance.
This ruling marks a significant victory for the cryptocurrency industry, establishing a precedent that could curb perceived regulatory overreach by the SEC.
SEC and Ripple Clash Over Confidential Financial Details in Court
In its response on May 20, the SEC urged the court to dismiss Ripple’s request. The SEC argued that Ripple’s current assets, recent sales figures, revenues, expenses, and the discounts offered to institutional investors are essential for assessing remedies. The SEC also accused Ripple of trying to hide the extent of these discounts, which it described as discriminatory.
In its latest response supporting its motion to seal, Ripple disagrees and states that its current financial status is irrelevant to the court’s analysis, emphasizing that it is not claiming an inability to pay any assessed penalty. Ripple argued that the SEC should not be permitted to force disclosure of Ripple’s sensitive financial information based on arguments that lack foundation, particularly when the court can dismiss those arguments without needing to refer to any confidential details.
Arguing for its rights to privacy and confidentiality, Ripple aimed to shield itself from the “significant harm” that could result if certain documents were made public.
According to Ripple’s court filing, the company attempted to seal specific documents related to the SEC’s motion for judgment and remedies. They requested “narrowly tailored redactions” for the briefing on the Remedies Motion and some exhibits.
Additionally, Ripple sought to have “highly sensitive and confidential” information completely sealed, emphasizing the need to protect this data from public disclosure.
SEC Counters Ripple’s Motion To Dismiss Expert Materials in Ongoing Legal Battle
At the beginning of May this year, the regulator submitted its opposition to Ripple’s request to dismiss new expert materials, focusing on testimony referred to as the “Fox Declaration.” Ripple had previously contested this declaration, arguing that it constituted an unsolicited expert opinion.
The SEC responded to Ripple’s objections by describing the testimony as “standard summary evidence in support of calculations for disgorgement.” They argued that such evidence is commonly used and appropriate for determining financial remedies in legal proceedings.
It then stated:
“It’s not an expert report, does not rely on specialized experience, and does not render any opinions, let alone an ‘expert’ one. Nor does it present the testimony of a percipient witness. Rather, it applies basic arithmetic to Ripple’s financial records to streamline the presentation of the evidence to Judge Torres […] The court should deny Ripple’s motion.”
The agency also expanded its argument by noting that the Fox Declaration included data sourced from documents produced by Ripple, such as tax returns and financial statements. The SEC highlighted the importance of this information in determining the appropriate financial penalties in the case, underscoring the declaration’s critical role in shaping the trial’s outcome.
The SEC had also emphasized that Federal Judge Torres had previously dismissed similar objections raised by Ripple, suggesting the possibility of the court siding with the company again. This reference is intended to bolster the SEC’s argument that the issues contested by Ripple have already been addressed and resolved by the court in past rulings. According to the Commission, these historical decisions reinforce the validity of their current position in the ongoing legal battle.
SEC Doubling Down: Files Remedies Brief, Seeks Injunction
As discussions surrounding the Ripple vs. SEC lawsuit heat up, the SEC has submitted its redacted remedies reply brief and supporting documents to the court.
This development, highlighted by influential crypto lawyer James K Filan, has stirred conversations within the crypto community.
Amid the ongoing legal battle between Ripple and the SEC, a significant development has emerged. The SEC filed its redacted remedies reply brief along with supporting exhibits. The SEC’s argument primarily centers on Ripple’s alleged recurrent violations and the necessity of injunctive relief to prevent future infractions.
Central to the SEC’s stance is Ripple’s history of unregistered sales of its XRP token, dating back to 2013, and its purported plans to introduce a new unregistered crypto asset. The SEC contends that Ripple’s past actions pose an ongoing risk, justifying regulatory intervention to protect investors and uphold market integrity.
In response to Ripple’s defenses, the SEC had dismissed similar arguments in prior cases, such as Coinbase, asserting that Ripple’s purported changes to prevent future violations are insufficient.
Furthermore, the SEC challenges Ripple’s objections to the disgorgement of ill-gotten gains, highlighting the harm inflicted on institutional investors due to undisclosed financial terms.
Ripple Lawyer Disputes SEC’s Claims of Financial Harm, Injunction Needed
In response to the SEC’s latest filing, pro-XRP lawyer Bill Morgan closely examined key issues raised, particularly concerning financial harm and the potential for a permanent injunction.
While the SEC argues for a broad interpretation of financial harm, challenging Ripple’s stance, Morgan expresses skepticism about the likelihood of disgorgement but anticipates an appeal.
Regarding the permanent injunction, the SEC asserts that Ripple’s primary business revolves around XRP sales to institutions, thus justifying the need for an injunction.
Furthermore, the SEC argues that Ripple’s defense on On-Demand Liquidity (ODL) sales lacks merit, potentially leading to a broad permanent injunction.
However, Morgan raises concerns about the court’s previous classification of ODL sales as investment contracts and foresees appellate challenges for Ripple.
Given this, the current focus is on demonstrating that ODL sales involve immediate consumptive use, a crucial aspect of Ripple’s defense strategy.
Alderoty: Gensler Prejudged Ripple’s Case
The legal battle between Ripple and the SEC took a new turn in October 2023 with the remarks made by SEC Chair Gary Gensler.
In a speech at the Securities Enforcement Forum 2023, Gensler referenced the SEC’s role as a protector of investors and a prosecutor of dishonest practices.
Stuart Alderoty, criticized Gensler’s recent remarks, which referenced the wisdom of the inaugural SEC Chair, Joseph P. Kennedy. The remarks highlighted the agency’s role as a collaborator with upright enterprises and a prosecutor of dishonest practices.
However, amid these statements, Gensler also included several quotes from leaders, with one of the most notable being: “We shall not prejudge, but we shall investigate.” This speech took place at the Securities Enforcement Forum 2023.
Upon disseminating Gensler’s speech, Alderoty swiftly responded to the comments. In his reply, Alderoty explicitly stated that Ripple’s case had been prejudged. Contrary to Gensler’s assertions, Ripple’s Chief Legal Officer seemed to underscore the true nature of the ongoing legal dispute.
He added: “Firstly, Ripple wasn’t charged for ‘Dishonesty,’ and secondly, the case was all ‘prejudged’ with a compromised Hinman’s Bill.”
William Hinman, a key figure in shaping the regulatory status of cryptocurrencies, is accused of having a potential conflict of interest due to later affiliations with a law firm involved in the Ripple case.
Expanding on his statement, Alderoty pointed out that the SEC had sued Ripple and various other firms without conducting prior investigations.
Furthermore, Alderoty tweeted about the SEC’s recent legal setbacks. He highlighted the agency’s courtroom losses and the criticism it faces from judges for what is described as “shady behavior.” The government’s internal auditor joined in the criticism, rebuking the SEC and raising questions about its internal practices.
Partial Victory
After nearly two years of litigation, Ripple landed a significant win against the SEC. On July 13, 2023, U.S. District Judge Analisa Torres declared that Ripple did not violate federal securities law by selling its XRP token on public exchanges.
The announcement caused a domino effect of positive outcomes. Ripple’s native token saw a huge surge in price, another big exchange had its hope revitalized regarding its own SEC case, and the market may have changed its perspective on altcoins.
The judge ruled that Ripple did not violate the securities law by selling $1.3 billion worth of XRP. Judge Torres decided that Ripple’s XRP sales on public cryptocurrency exchanges were not offers of securities under the law because they do not guarantee profit.
On top of that, Ripple sold XRP in “blind bid/ask transactions,” and therefore, buyers “could not have known if their payments of the money went to Ripple or any other seller of XRP.”
Ripple vs. SEC Timeline
| Date |
Event |
| Dec. 21, 2020 |
SEC initiates a lawsuit against Ripple Labs. |
| Dec. 28, 2020 |
Coinbase delists XRP. |
| March 3, 2021 |
Larsen and Garlinghouse challenge the SEC’s fair notice. |
| March 8, 2021 |
SEC requests an immediate hearing in response to the challenges. |
| March 22, 2021 |
Judge Sarah Netburn determines that XRP has currency value and utility. |
| April 13, 2021 |
SEC Commissioner Hester Peirce publishes Token Safe Harbor Proposal 2.0. |
| June 14, 2021 |
The deadline for the SEC’s internal crypto trading policies was extended. |
| Aug. 31, 2021 |
Deadline for disclosure of the SEC’s internal crypto trading policies. |
| Oct. 15, 2021 |
Deadline for expert discovery, including opinions from cryptography and securities experts. |
| Jan. 24, 2022 |
Extension granted for the disclosure of sensitive government documents. |
| Sept. 17, 2022 |
SEC and Ripple Labs file initial motions for summary judgment. |
| Sept. 21, 2022 |
The Chamber of Digital Commerce granted permission to file an amicus curiae brief. |
| Dec. 2, 2022 |
Public release of replies to summary judgment motions. |
| Dec. 22, 2022 |
SEC attempts to prevent the public release of Hinman documents. |
| June 12, 2023 |
Hinman documents are unsealed and made public. |
| July 13, 2023 |
Judge Torres ruled Ripple did not violate the law when XRP was sold on public exchanges. |
| Aug. 7, 2024 |
Judge Torres orders Ripple to pay a $125 million fine. |
| Oct. 2, 2024 |
SEC files a notice of appeal. |
| Oct. 10, 2024 |
Ripple files a cross-appeal. |
| Oct. 18, 2024 |
SEC files a Form C with additional time granted. |
| Oct. 25, 2024 |
Ripple submits its Form C. |
| Oct. 31, 2024 |
U.S. Court of Appeals orders SEC to submit final briefing by Jan. 15, 2025. |
| Nov. 21, 2024 |
SEC Chair Gary Gensler announces he’ll step down on Jan. 20, 2025. |
| Jan. 15, 2025 |
SEC files its opening brief against Ripple’s appeal. |
| March 19, 2025 |
SEC drops its case against Ripple as Garlinghouse announces on X. |
| March 26, 2025 |
Ripple drops its appeal against the SEC. |
| April 16, 2025 |
A federal court pauses the legal battle after requests from the SEC and Ripple Labs. |
| June 13, 2025 |
Ripple and SEC ask to dissolve an injunction and release $125 million held in escrow. |
| Aug. 8, 2025 |
Ripple and SEC dismissed their appeals, ending the legal case. |
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear.
Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3.
An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.
