Ripple Wins Against SEC, But CEO Remains Silent — Former SEC Lawyer Addresses ‘Fake News’ Claims
Ripple and SEC End Years-Long Legal Battle as Appeals Are Dismissed — What It Means for XRP’s Future
The cryptocurrency world erupted this week after one of the most closely watched legal battles in digital asset history finally came to an end. Ripple Labs and the U.S. Securities and Exchange Commission (SEC) jointly filed to dismiss their appeals in the long-running Ripple vs. SEC case — a move that effectively closes the book on more than five years of contentious litigation.
The development sent a wave of optimism through the XRP community, which has endured years of uncertainty and market volatility since the SEC first sued Ripple in December 2020, alleging that the company had conducted unregistered securities sales through its XRP token. But while many celebrated the moment as a landmark victory for Ripple, others remained skeptical, questioning whether the case was truly over.
A Legal Saga That Shaped the Crypto Industry
The Ripple-SEC dispute began when the SEC accused Ripple Labs, along with executives Brad Garlinghouse and Chris Larsen, of raising over $1.3 billion through what it claimed were unregistered securities offerings of XRP. The case quickly became a symbol of the broader battle between U.S. regulators and the cryptocurrency industry, with the outcome widely seen as having far-reaching implications for how digital assets would be classified in the future.
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Over the years, the case drew attention from lawmakers, industry leaders, and global regulators. Judge Analisa Torres’s 2023 ruling — which determined that XRP sales to retail investors through exchanges did not constitute securities transactions — was hailed as a partial victory for Ripple. However, the ruling also allowed parts of the SEC’s claims to stand, keeping the legal fight alive through appeals.
Joint Dismissal Signals the End
On Thursday, August 8, the tension finally broke. Ripple Labs and the SEC filed a Joint Stipulation of Dismissal of Appeals directly with the U.S. Court of Appeals for the Second Circuit. This filing effectively ends the appellate phase of the case, allowing Judge Torres’s original ruling to take full effect without further judicial intervention.
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the news in a statement:
“Following the Commission’s vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals. The end… and now back to business.”
This confirmation came after hours of speculation on social media, where misinformation and confusion had begun to spread. Some XRP holders questioned the legitimacy of the news, claiming they could not find confirmation on the SEC’s website. Others suggested it might be a “diversion,” pointing to the lack of immediate formal statements from either party’s top executives.
Silence from Ripple’s CEO Fuels Speculation
One of the more curious aspects of the day’s events was the silence from Ripple CEO Brad Garlinghouse. Known for being outspoken on Twitter (now X), Garlinghouse had not commented publicly more than 24 hours after the announcement. This absence of immediate reaction from Ripple’s top executive prompted speculation from investors and industry analysts.
Some interpreted Garlinghouse’s silence as a deliberate strategy, possibly waiting to make a formal statement during a planned media appearance or upcoming conference. Others argued it reflected a cautious approach, aiming to avoid further market volatility while the news was still settling.
Former SEC Lawyer Clears the Confusion
Adding clarity to the situation, former SEC attorney Marc Fagel took to social media to address lingering doubts.
“The joint stipulation of dismissal is public, so not sure what you think needs to be announced,” Fagel wrote.
He further explained that Judge Torres does not need to sign off on anything at this stage. Once the Court of Appeals processes the dismissal, the earlier district court decision will automatically stand.
“No judges need to weigh in on anything at this point,” he stated, emphasizing that from a legal standpoint, the matter is over.
Market Reaction: A Cautious Rally
Following the announcement, XRP saw a modest price uptick, though the move was far less dramatic than some investors anticipated. Analysts suggest the muted reaction reflected a “sell the news” effect, with many traders having already priced in the likelihood of a settlement or dismissal after months of legal developments leaning in Ripple’s favor.
Market strategist Clara Jennings of Digital Asset Insights commented:
“The legal clarity is a long-term positive for Ripple and XRP, but markets are forward-looking. Many big players already expected this outcome, so the real price action may depend on how Ripple capitalizes on this freedom in the months ahead.”
Implications for Ripple’s Business Strategy
With the “bad actor” label effectively removed, Ripple now has a clearer path to expanding its business partnerships, particularly in the U.S. The company has already established a strong global presence in cross-border payments, leveraging XRP as a bridge currency. Analysts believe the removal of regulatory overhang could attract new institutional partners and open opportunities for fundraising.
Ripple’s legal victory could also have ripple effects — no pun intended — for the broader cryptocurrency industry. The case set a precedent for distinguishing between different types of token sales, particularly those on secondary markets versus direct sales to institutional investors.
Remaining Skepticism Within the Community
Despite the legal clarity, not all XRP holders are ready to celebrate. A portion of the community remains wary, pointing to the lack of immediate formal statements from the SEC or Ripple’s full leadership team. In a market often plagued by misinformation, many investors prefer to wait for official press releases before declaring the matter resolved.
There is also a recognition that while this case is over, the SEC continues to pursue enforcement actions against other crypto companies. As such, the industry’s broader regulatory landscape remains uncertain.
The Road Ahead: From Legal Defense to Business Offense
For Ripple, the shift from courtroom battles to business expansion marks a pivotal moment. In the past year alone, the company has announced partnerships with payment providers in Asia, Europe, and Latin America. Its On-Demand Liquidity (ODL) service, which uses XRP to facilitate instant cross-border payments, has grown in adoption despite the ongoing lawsuit.
Industry insiders say Ripple could now focus on:
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Rebuilding U.S. Market Presence — After years of avoiding aggressive expansion in the American market due to regulatory uncertainty.
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Securing New Institutional Partnerships — Particularly with banks and fintech firms previously hesitant to engage with a company in active litigation.
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Driving XRP Utility — Expanding real-world use cases to strengthen long-term value beyond speculative trading.
A Defining Moment for Crypto Regulation
The end of the Ripple vs. SEC case will likely be studied for years as a turning point in U.S. crypto regulation. While it does not resolve all questions surrounding digital asset classification, it has provided the clearest judicial guidance yet on how certain token sales should be treated.
As the industry continues to push for clearer legislation, Ripple’s outcome may empower other crypto firms to challenge the SEC’s interpretations in court, rather than settling early.
Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.
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