XRP Rises as Ripple’s CEO Garlinghouse Indicates Resolution of SEC Conflict

XRP experienced an increase of over 3% on Friday following the announcement from Ripple Labs CEO Brad Garlinghouse that the company is withdrawing its cross-appeal against the US Securities and Exchange Commission (SEC).

Key Takeaways:

• XRP rose after Ripple’s CEO revealed intentions to abandon the cross-appeal against the SEC.
• A federal court recently rejected Ripple and the SEC’s request to lessen a $125 million penalty.
• Ripple’s legal team highlighted that XRP’s classification as not a security remains intact, alleviating investor worries.

“Ripple is withdrawing our cross-appeal, and the SEC is anticipated to drop their appeal, as they have previously indicated,” Garlinghouse stated in a post on X.

He further mentioned that Ripple is now concentrating on “building the internet of Value” as the company moves forward from the protracted legal proceedings. Following his remarks, XRP rose by 3.36% to $2.18, according to data from CoinMarketCap.

Court Denies Ripple-SEC Request to Reduce $125M Fine

This development follows a day after the US district court dismissed a joint request from Ripple and the SEC for an indicative ruling to decrease Ripple’s $125 million civil penalty and overturn the order categorizing Ripple’s institutional XRP sales as securities transactions.

Judge Analisa Torres noted that Ripple’s readiness to “push the boundaries” of the previous summary judgment suggested a likelihood of additional violations.

Ripple’s chief legal officer Stuart Alderoty remarked on the court’s ruling, stating that Ripple faced two choices: to withdraw its appeal or to continue contesting the finding.

He stressed that regardless of the chosen course, “XRP’s legal status as not a security remains unchanged,” providing reassurance to investors that Ripple’s operations would continue as usual.

The SEC lawsuit, initially filed in December 2020, accused Ripple Labs, Garlinghouse, and co-founder Chris Larsen of generating $1.3 billion through unregistered XRP sales in breach of federal securities laws.

#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: Judge Torres has denied the parties’ Motion for an Indicative Ruling. pic.twitter.com/9AMhGcQUsU

— James K. Filan (@FilanLaw) June 26, 2025

While the court determined that Ripple’s programmatic sales of XRP did not qualify as securities transactions, it ruled that Ripple’s institutional sales did.

Garlinghouse had previously characterized Judge Torres’ August 2024 ruling that imposed a $125 million penalty — significantly lower than the SEC’s original $2 billion request — as a “victory” for Ripple.

If the SEC proceeds with dropping its appeal, it would signify the conclusion of a four-year conflict, potentially removing a significant uncertainty regarding XRP’s future in the US market.

XRP Ledger Upgrade Introduces Institutional Tokens

As reported, RippleX, the development division of Ripple, has launched version 2.5.0 of the XRP Ledger, incorporating various protocol enhancements aimed at bolstering network functionality and security.

RippleX engineer Mayukha Vadari referred to the upgrade as “possibly the best single lineup of amendments” ever released, bringing notable advancements to token management and transaction processing.

The XLS-85 amendment enhances the escrow system by permitting third-party issued tokens, including stablecoins, and introduces multi-purpose tokens tailored for institutional uses.

Another significant modification, XLS-56, allows wrapper transactions that can consolidate up to eight steps into a single action, with the goal of reducing failure rates in complex transaction flows and enhancing network efficiency for sophisticated use cases.

The new update arrives as the XRP Ledger has seen a rise in user engagement, with the number of daily active addresses increasing from an average of 35,000 to over 295,000.

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