As per reports, the U.S. Securities and Exchange Commission (SEC) has agreed, in principle, to drop its appeal against Ripple regarding programmatic and secondary market sales of XRP. This decision, however, is still pending final approval by the Commission.
The development marks a significant moment in the long-running legal battle between the regulator and the blockchain firm, but it does not bring an immediate resolution to all outstanding issues.
Eleanor Terrett, a journalist covering regulatory affairs, highlighted that the ruling issued by Judge Analisa Torres in August remains intact despite the SEC’s decision.
While the agency is stepping back from its appeal, Ripple has not yet agreed to withdraw its own challenge. The company continues to contest the $125 million fine imposed by the court and the ongoing injunction that restricts it from selling XRP to institutional investors without registering those transactions as securities.
Sources familiar with the case suggest that Ripple now holds the advantage, as it is technically in the position of a plaintiff rather than a defendant. The company must decide whether to proceed with its appeal or accept the existing ruling. The uncertainty also raises questions about whether the SEC will engage in further negotiations to modify the district court’s judgment.
The case has been closely watched due to its broader implications for digital asset regulation, and both sides appear to be navigating unprecedented legal territory.
Terrett pointed out that this phase of the dispute was always expected to require additional discussion and nuance, particularly given the evolving regulatory landscape for crypto. While the SEC’s decision to drop its appeal signals a shift in its approach, it does not mean a complete resolution of the legal proceedings.
For now, the agency is no longer actively pursuing charges against Ripple, assuming the Commission formally approves the withdrawal of the appeal, which is widely expected.
In the wake of the SEC’s decision, crypto derivatives exchange Bitnomial is also dropping its lawsuit against the agency. The firm had sued the SEC in October, challenging its jurisdiction over Bitnomial’s planned XRP futures contract.
🚨SCOOP: In the wake of the @SECGov agreeing to drop its appeal against @Ripple, #crypto derivatives exchange @Bitnomial plans to drop its own lawsuit against Wall Street’s top cop after suing the agency in October over its claim that it had jurisdiction over Bitnomial’s planned…
— Eleanor Terrett (@EleanorTerrett) March 19, 2025
With the regulatory landscape shifting, the company has decided to step back from its legal battle. Additionally, as per Terrett, Bitnomial is set to officially launch its XRP futures contract tomorrow morning with approval from the Commodity Futures Trading Commission (CFTC).
The case between Ripple and the SEC has been a focal point in the crypto industry, setting potential precedents for how digital assets are classified and regulated in the U.S. With Ripple weighing its next steps, regulatory discussions continuing at multiple levels, and derivatives markets moving forward with new products, the outcome of these developments could shape the future of digital asset regulation.
Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by the Editorial Team.
