Ripple opts not to cross-appeal as SEC case nears resolution

Ripple has decided not to file a cross-appeal, signaling that its long-running legal battle with the U.S. Securities and Exchange Commission is nearing an end, the firm's chief legal officer said Wednesday.Ripple Chief Legal Officer Stuart Alderoty posted on Wednesday on X his potential "last update" on the case following four years of back and forth between the two. Last week, Ripple CEO Brad Garlinghouse said that the SEC had pulled its appeal of part of an earlier ruling.A cross-appeal, which allows both sides to challenge different aspects of a court ruling, could have given Ripple a chance to contest its $125 million liability, but instead, Alderoty said the SEC will keep part of that amount and return the rest to the firm."The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple," he said. "The agency will also ask the Court to lift the standard injunction that was imposed earlier at the SEC’s request."The SEC declined to comment. Alderoty noted that this would all be subject to a commission vote, final documents and standard court processes. U.S. District Court for the Southern District of New York Judge Analisa Torres ruled in July 2023 that some of Ripple’s sales, called programmatic, of XRP did not violate securities laws because of a blind bid process in place for them. Torres, however, ruled that other direct token sales to institutional investors were securities.That second part regarding institutional investors meant that Ripple would be fined $125 million. The SEC has taken on a new direction since the new Trump administration rolled in, following former Chair Gary Gensler's exit in January. Under the previous Biden administration, Gensler had said most cryptocurrencies were securities and called on crypto platforms to register with the agency. While the agency brought cases against major crypto exchanges and firms under Gensler’s reign, the case against Ripple was brought before Gensler became chair.Over the past several weeks, the SEC has rescinded controversial crypto accounting guidance, looked to re-examine rules affecting crypto, created a crypto task force and issued statements on memecoins and proof-of-work. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.