US Securities and Exchange Commission (SEC) Drops Appeal Against Ripple, Ending Years of Legal Battles

After years of legal battles and mounting tension, the U.S. Securities and Exchange Commission (SEC) has officially decided to drop its appeal against Ripple.

The U.S. Securities and Exchange Commission (SEC) has decided to drop its appeal against Ripple, marking the end of a long-running legal saga that began in December 2020. The SEC had accused Ripple of illegally selling unregistered securities in the form of XRP tokens. However, Judge Torres ruled multiple times in favor of Ripple, dismissing all three claims brought by the SEC.

Earlier this year in January, the SEC’s decision to appeal, even after the resignation of former chairman Gary Gensler and amidst rumors of a possible settlement, frustrated many. However, the agency has now decided to drop the appeal.

The SEC’s appeal focused on Judge Torres’ ruling that the SEC failed to provide sufficient evidence for its claims. The SEC argued that, despite losing on the merits of its case, it should be allowed to pursue the case further due to a technicality related to the timing of its announcement about no longer contesting Judge Torres’ ruling on introducing evidence of federal securities law violations.

After the SEC announced its decision to appeal, Judge Torres stayed the order that would have seen the case closed and allowed the case to return to Judge Torres’ courtroom.

The crypto community closely followed the case, as it had significant implications for the broader digital asset ecosystem. Many members of the crypto industry were critical of the SEC’s actions, which they argued were part of a broader attempt by the agency to stifle innovation in the cryptocurrency space.

Following the dismissal of the appeal, excitement surged in the crypto market, with XRP’s value experiencing a notable uptick. Despite this positive development for Ripple, enthusiasts are still awaiting a formal confirmation from the SEC.

As of March 28, 2025, the SEC has officially announced the dismissal of litigation against several other companies, including Kraken, ConsenSys, and Cumberland, but has yet to make a statement on the Ripple case. According to Fox Business reporter Eleanor Terrett, the SEC’s current focus is on addressing the procedural requirements for lifting the standard injunction imposed by Judge Torres, which has delayed the official end to the case.

Attorney Fred Rispoli said that with the recent announcements, the paperwork for lifting the injunction is already being prepared. A vote by the SEC Commission is expected in less than 30 days. Once that happens, Ripple will not oppose the motion to lift the injunction, and Judge Torres will likely sign off on it. All of this means that within 60 days, Ripple’s legal battles with the SEC could be fully and formally resolved.

For now, the crypto community remains on edge, awaiting the final formalities to conclude.