- SEC drops Ripple Case appeal; XRP gains as regulatory clarity improves, but Ripple’s pending appeal keeps community questions alive.
- $125M Ripple penalty awaits final SEC vote; case closure pending paperwork submission after commissioners’ decision.
The SEC has withdrawn its appeal in the ongoing lawsuit against Ripple Labs, a move analysts say clarifies XRP’s regulatory standing. Crypto analyst Vincent Van Code described the decision as resolving the central issue affecting XRP and the broader crypto sector. The price of XRP rose following the announcement, reflecting improved market sentiment.
Ripple announces that SEC intends to drop their appeal in the ongoing litigation.
This itself is amazing, but I suspect the jaded naysayers will STILL be in doubt.
In the next week or so (maybe after the SEC Sunshine meeting Thursday) the case will be officially closed as voted…
— Vincent Van Code (@vincent_vancode) March 19, 2025
The SEC initially challenged a July 2023 court ruling that determined XRP was not a security when sold to retail investors. By dropping the appeal, the agency ends uncertainty over this aspect of the case. However, some community members note that Ripple retains the right to appeal other parts of the ruling, including a $125 million penalty for violating securities laws through institutional sales.
The sticking point FOR XRP and entire industry was SEC appealed "XRP is not a security" ruling, which casted FUD again on XRP future
That appeal has been withdrawn.
The rest is just BAU litigation, which the biggest companies like JP MORGAN have ongoing with SEC.
— Vincent Van Code (@vincent_vancode) March 20, 2025
Van Code addressed concerns about Ripple’s potential appeal, stating remaining legal matters involve standard business disputes rather than existential threats to XRP. He compared the case to routine litigation involving large financial firms, emphasizing that the SEC’s withdrawal removes the primary cloud over XRP’s future.
I don't think people necessarily doubt the SEC dropping the case. It poses positive, no doubt, and the market reflected that today. It is the other half of the case still up for grabs. Ripple still has their appeal, and no one knows for certain what the exact direction Ripple…
— Watchman7 (Laken Riley) (@L_T_M_22) March 19, 2025
In August 2024, a court ordered Ripple to pay the $125 million penalty, which the company has already placed in escrow. Van Code clarified that the penalty decision is final, though formal dismissal paperwork awaits submission after SEC commissioners vote on the matter. Ripple executives Brad Garlinghouse and Stuart Alderoty confirmed the SEC’s vote will occur at its next meeting, after which the case will conclude administratively.
Garlinghouse publicly celebrated the SEC’s appeal withdrawal, calling it a positive step for XRP’s market position. Community reactions remain mixed, with some investors questioning whether the penalty and Ripple’s unresolved appeal could delay full regulatory clarity.
Announcing the case is going to be withdrawn does not mean its over. The judge has not issued a final ruling and the 125 million fine has to be addressed.
— MisterM (@I_MisterM_I) March 20, 2025
ETHNews analysts note that XRP’s price stability post-ruling suggests cautious optimism. The resolution allows Ripple to focus on expanding partnerships, particularly in cross-border payments, though U.S. operations remain constrained pending final regulatory approvals.
As the SEC shifts focus to enforcing updated guidelines, the crypto industry watches for broader implications. The Ripple case underscores the challenges of applying traditional securities frameworks to digital assets, a tension likely to persist as regulators refine their approaches.
