- Ripple dropped its appeal after Judge Torres refused to alter her original XRP ruling.
- The long-standing SEC vs Ripple case may now be approaching its final chapter.
- XRP price briefly dropped 5% but recovered after Ripple’s announcement.
- Investors should now focus on Ripple’s growth potential and partnership developments beyond legal hurdles.
Ripple Legal Saga Nears Conclusion: XRP Drops 5% on Ruling, Recovers Quickly
The turbulent legal drama between Ripple Labs and the Securities and Exchange Commission (SEC) appears to be nearing its conclusion. In a decisive moment, Ripple officially withdrew its appeal after Judge Analisa Torres denied a joint motion to reduce the penalty and lift the injunction on institutional sales of XRP.
Also Read: Ripple (XRP) vs SEC: Legal Expert Sets the Record Straight on Judge Torres Ruling
The court’s June 26 ruling confirmed that none of the facts had changed, reaffirming the earlier verdict: Ripple’s XRP institutional sales constituted securities transactions, while retail sales did not. Judge Torres emphasized that rulings must reflect the public interest, not the preferences of litigants, stating there were no exceptional circumstances to warrant a reversal.
Ripple CEO Brad Garlinghouse promptly responded by withdrawing the cross-appeal. It’s expected that the SEC will follow suit, effectively ending the four-year legal conflict that began in 2020.
Ripple’s Legal Struggles and Market Impact
Since the SEC filed the lawsuit in 2020, claiming Ripple sold unregistered securities, the case has shaped conversations around crypto regulation in the U.S. Despite its ongoing legal battle, XRP has managed to maintain a strong position, demonstrating investor faith in Ripple’s long-term potential.
While the injunction on institutional XRP sales remains, Ripple will now need to comply with legal requirements when conducting such transactions. Although it’s unclear how limiting this injunction has been, Ripple’s push to lift it suggests it was a significant operational constraint.
What Investors Should Know
Following the judge’s decision, XRP fell 5%, only to regain ground shortly after Ripple’s announcement. That market reaction suggests most investor optimism was already priced in, especially considering XRP’s 300% rise since Trump’s election win.
With the court case essentially over, Ripple can now refocus on growth, adoption, and forming strategic partnerships. The company’s opaque finances—common for private firms—make it hard to measure its real traction, but its resilience in the crypto market can’t be ignored.
Yet, XRP’s nearly $130 billion market cap raises eyebrows. That figure is double that of PayPal (PYPL), a well-established public payments firm. For savvy investors, comparing XRP to public payment companies offers deeper insight into whether the token is overvalued.
Time to Look Beyond the Courtroom
Ripple’s decision to end its legal fight marks a turning point. While the injunction and $125 million fine remain, the spotlight now turns to XRP’s real-world utility and how Ripple builds from here. For investors, this is a moment to evaluate long-term fundamentals, not courtroom headlines.
