Ripple Case May Shape Future Crypto Lawsuits

After more than four years of legal battle and a globally scrutinized decision, Ripple puts an end to its standoff with the SEC. The withdrawal of its appeal, and the expected withdrawal by the regulator, seals the conclusion of an emblematic lawsuit for the crypto industry. In a climate where every move by the authorities influences the market, this outcome permanently clarifies the legal status of XRP and redefines the regulatory framework lines in the United States.

The judgment confirmed, the judicial chapter definitively closes

While the US justice system had rejected the agreement between Ripple and the SEC, the closure of the dispute between Ripple and the SEC was formally enacted on June 27, 2025, when Brad Garlinghouse, CEO of Ripple, publicly announced on X : “Ripple withdraws its cross-appeal, and the SEC is expected to drop theirs, as they have already indicated. We are definitively closing this chapter to focus on what matters: building the Internet of Value. We’re moving into action.”

Ripple is dropping our cross appeal, and the SEC is expected to drop their appeal, as they’ve previously said. We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value. Lock in. https://t.co/ZsRgDfcpLh

— Brad Garlinghouse (@bgarlinghouse) June 27, 2025

This statement follows the ruling issued the day before by federal judge Analisa Torres, who rejected the joint attempt by Ripple and the SEC to modify the final decision. The court thus maintains a financial penalty of $125 million against Ripple, accompanied by a permanent injunction against conducting new unregistered institutional XRP sales.

In her decision, the judge was firm : “the parties do not have the power to agree not to be bound by a final judgment rendered by the court […] This is clearly not the case here.”

#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: Judge Torres has denied the parties’ Motion for an Indicative Ruling. pic.twitter.com/9AMhGcQUsU

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) June 26, 2025

In other words, judicial authority overrides any bilateral agreement between the parties. This refusal concerns a proposal submitted on May 8, 2025 by Ripple and the SEC, which aimed to :

• Reduce the initial fine from $125 million to $50 million ;
• Remove the permanent injunction banning non-compliant institutional sales ;
• Agree on a settlement agreement without officially modifying the acknowledgment of the violation of securities law.

Judge Torres rejected this attempt, emphasizing that the parties did not demonstrate the “exceptional circumstances” necessary to revise a final judgment.

Consequently, the decision rendered in July 2023 remains unchanged. Ripple violated federal securities laws in its institutional sales, but XRP itself does not constitute a security, particularly for programmatic sales on trading platforms.

A reinforced regulatory framework and a strategic signal for Ripple

With the withdrawal of appeals, the legal uncertainty surrounding the nature of XRP further diminishes. Stuart Alderoty, Ripple’s Chief Legal Officer, publicly reaffirmed that the regulatory status of the asset remains unchanged : “the legal status of XRP as a non-security remains unchanged.”

With this, the ball is back in our court. The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales—or press forward with the appeal. Stay tuned. Either way, XRP’s legal status as not a security remains unchanged. In the meantime,… https://t.co/edHNbMzYbZ

— Stuart Alderoty (@s_alderoty) June 26, 2025

His message, published on June 26 on X, aimed to reassure the markets and Ripple’s partners, as some concerns circulated following the rejection of the proposed settlement by the court.

In the same spirit, attorney Bill Morgan stated in these terms: “programmatic sales do not constitute investment contracts. Ripple has found other ways to sell XRP to institutions. XRP itself is not a security.” These remarks highlight both the technical and symbolic outcome of the trial: Ripple will not be forced to give up using XRP as a freely tradable crypto.

Far from being a simple legal relief, this decision allows Ripple to strategically reposition itself. Freed from uncertainty that heavily weighed on its credibility with institutions and partners, the company now announces its intention to focus on developing the “Internet of Value.”

By this expression, Brad Garlinghouse refers to a decentralized financial infrastructure integrating cross-border payments, asset tokenization, and decentralized banking services. This outlook now seems more realistic for Ripple, which can redirect its resources towards growth initiatives rather than defending itself in court.

Beyond Ripple, this conclusion could set a precedent. By establishing a clear legal boundary between institutional sales and public platform sales, Judge Torres’s ruling could influence other ongoing cases against major sector players, notably those filed by the SEC against Coinbase or Binance. Some legal experts already see this as indirect jurisprudence on the classification of cryptos, a central issue at a time when the United States continues to seek to build a coherent regulatory framework. In this context, the end of the Ripple/SEC saga could well become a historic marker, both legally and strategically, for the entire industry.