Main Points:
- Ripple Labs has decided to withdraw its cross-appeal in the long-running lawsuit with the U.S. Securities and Exchange Commission (SEC).
- Both Ripple and the SEC are expected to drop their appeals, allowing the case to finally close.
- Ripple will accept the original $125 million civil penalty; the permanent injunction against the company remains in force.
- XRP’s price ticked up about 1.4% on the news; it has gained 5.3% year-to-date in 2025, outperforming bitcoin and ether.
- Institutional interest in XRP is growing, with CME launching futures and Franklin Templeton filing for an XRP ETF in March.
- Broader regulatory momentum includes the Federal Housing Finance Agency instructing Fannie Mae and Freddie Mac to consider crypto assets in mortgage assessments.
Background: A Protracted Battle
The SEC first sued Ripple Labs in December 2020 under Chairman Jay Clayton’s leadership, alleging that the firm’s sale of XRP tokens constituted unregistered securities offerings. After years of litigation, Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled in mid-2023 that XRP sales to retail investors on public exchanges were not securities transactions, but XRP sales to institutional investors did violate securities laws. Despite this mixed ruling, neither side achieved a definitive victory, setting the stage for multiple appeals and cross-appeals.
Decision to Withdraw Cross-Appeal
On June 27, 2025, Ripple CEO Brad Garlinghouse announced on X (formerly Twitter) that Ripple would withdraw its cross-appeal against the SEC and that the SEC would likewise drop its appeal. This announcement followed Judge Torres’s June 26 decision to reject a joint settlement motion that sought to reduce Ripple’s civil penalty to $50 million and lift the permanent injunction—Torres found that removing the injunction would conflict with the court’s own findings about Ripple’s potential to continue violating securities laws. With both parties set to withdraw appeals, the original $125 million penalty stands and the injunction remains in place.
Market Reaction and XRP Price Trends
The immediate market response was muted but positive: XRP rose roughly 1.4% on the news of the withdrawal, trading around $0.533 on June 27, 2025. Below is a clear view of XRP’s price movement over the week, illustrating a modest upward trend in late June as regulatory uncertainties receded: <div>
See Figure 1 for a detailed table and chart of XRP’s price (USD) from June 25 to June 30, 2025. </div>
Refer to the chart above.
Institutional Momentum: Futures and ETFs
Beyond spot trading, institutional players are increasingly engaging with XRP:
- CME Group launched XRP futures earlier in 2025, bolstering liquidity and providing regulated derivatives exposure to the token.
- In March 2025, asset manager Franklin Templeton filed for a spot XRP exchange-traded fund, underscoring confidence in XRP’s regulatory clarity post-2023 ruling.
These developments reflect a broader trend of traditional financial institutions incorporating crypto assets into their offerings, seeking diversified yield and liquidity solutions.
Regulatory Developments Beyond Ripple
The regulatory landscape for digital assets continues to evolve:
- On June 25, 2025, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to “prepare their businesses to count cryptocurrency as an asset for mortgage,” potentially enabling crypto holders to leverage token holdings for loan qualifications.
- Ripple’s own venture into stablecoins—such as the RLUSD dollar-backed token—illustrates how crypto firms are extending beyond litigation to innovate payment and liquidity solutions.
These shifts indicate increasing acceptance of crypto assets in mainstream finance, from loan underwriting to payments infrastructure.
Implications for Blockchain and Crypto Adoption
The resolution of Ripple’s legal battle removes a major regulatory overhang for XRP, potentially unlocking new use cases:
- Payment Rails: Financial institutions may more readily integrate XRP-based liquidity tools, lowering costs and settlement times in cross-border transfers.
- DeFi and Smart Contracts: Clarity around XRP’s legal status could spur decentralized finance protocols to leverage XRP as collateral or liquidity pools.
- Corporate Treasuries: With crypto assets recognized in mortgage assessments, corporate and retail treasurers might allocate portions of their balance sheets to digital tokens, diversifying risk.
Conclusion
Ripple’s withdrawal of its cross-appeal against the SEC marks the end of a nearly five-year legal odyssey, reaffirming a $125 million penalty and preserving a permanent injunction. While both parties step back from further court battles, the crypto market moves forward: XRP has demonstrated resilience with a modest price uptick and strong year-to-date performance. Institutional interest, via futures, ETFs, and regulatory accommodations, signals growing integration of crypto into traditional finance. As regulatory clarity emerges, XRP’s role in payments, liquidity, and asset portfolios is poised to expand, accelerating the development of the Internet of Value.
