XRP Price Jumps 3% as Ripple Drops SEC Cross-Appeal

XRP climbed 3.36% to $2.18 on Friday, reacting to Ripple Labs CEO Brad Garlinghouse’s announcement that the company is abandoning its cross-appeal against the U.S. Securities and Exchange Commission (SEC) [1]. The move marks a significant pivot in a four-year legal battle that began in December 2020, when the regulator first alleged the firm raised $1.3 billion through unregistered securities sales [1].

Legal shift and market reaction

The price action followed a statement from Garlinghouse on X, where he declared the company is "closing this chapter once and for all" [1]. The decision to drop the cross-appeal comes just one day after a U.S. district court denied a joint motion from both parties that sought to reduce a $125 million civil penalty and reverse an order regarding institutional sales [1]. While the court granted the SEC’s request for an injunction, citing concerns that Ripple’s conduct showed a willingness to "push the boundaries" of previous orders, the company maintains that the legal status of XRP remains unchanged [1].

Ripple’s chief legal officer, Stuart Alderoty, noted that the court provided two paths: dismissing the appeal regarding historic institutional sales or pressing forward [1]. By choosing to drop the appeal, Ripple is effectively signaling a desire to conclude the litigation, provided the SEC follows through on its own stated intentions to drop its side of the appeal [1]. This development follows a long-running dispute where the $125 million penalty ultimately imposed in August 2024 was viewed by the firm as a 94% reduction from the SEC’s initial $2 billion demand [1].

What to watch

• SEC Response: Monitor whether the SEC formally moves to drop its appeal, which would officially conclude the four-year litigation [1].
• Legal Precedent: Observe any further court filings regarding the $125 million civil penalty and the injunction granted by Judge Analisa Torres [1].
• Operational Focus: Watch for Ripple’s stated pivot toward "building the internet of Value" now that the firm has signaled a return to regular operations [1].

The market’s positive response to the announcement reflects investor sensitivity to the regulatory uncertainty that has shadowed XRP since 2020. Whether this move leads to a definitive end to the SEC case remains the central question for the asset's long-term regulatory standing.