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Following the SEC’s decision to drop its case against Ripple, the company has revealed its consideration regarding its cross-appeal.
Ripple recorded a major victory yesterday after Garlinghouse, the company’s CEO, declared that the SEC has agreed to drop its appeal.
Although the decision still requires the commission’s approval, it marks the end of a multi-year lawsuit that has negatively impacted the company’s operations in the U.S.
Recall that Ripple also filed a cross-appeal weeks after the SEC challenged Judge Analisa Torres’ decision. While the SEC has agreed to drop its appeal, Ripple has not made a decision on its cross-appeal.
Why Ripple’s Cross-Appeal Is Still Pending
Speaking in an interview with Bloomberg, Ripple’s CEO provided insight into what is causing the delay. He suggested that the $125 million fine and ‘other pieces’ of Judge Torres’ decision are major points of contention.
Ripple CEO Brad Garlinghouse says that the SEC has abandoned their appeal in its lawsuit against the company, and “at this point all we’re fighting for is – do we want to fight get the $125 million dollars back” pic.twitter.com/aGxAydS6hX
— Bloomberg Crypto (@crypto) March 19, 2025
It should be recalled that Judge Torres ordered Ripple to pay a $125 million fine for violating federal securities laws and imposed a permanent injunction against the company’s future sales to institutions.
During the interview, Garlinghouse noted that he had ‘walked away’ from the $125 million fine before the SEC appealed and before President Trump appointed several pro-crypto policymakers, such as Paul Atkins and David Sacks.
However, under the current pro-crypto SEC leadership, he now has different reasoning. He emphasized that the case should not have been initiated in the first place, noting that the regulator also shared this sentiment.
While he acknowledged that the case presented a clear legal victory in establishing that XRP is not a security, he still thinks some aspects of the lawsuit–the fine and permanent injunction–require ‘clean up.”
Ripple at Crossroads
Interestingly, Ripple’s CEO pointed out that the company is at a crossroads. He noted that the company must now decide whether to continue its cross-appeal to resolve the remaining issues or reach an agreement with the SEC to ‘drop everything,’ including the $125 million fine and permanent injunction.
Notably, Ripple has already complied in part with Judge Torres’ decision by paying the $125 million fine, which is currently held in escrow. In the interview, Garlinghouse suggested that Ripple does not mind recovering the money.
“We would not mind having that back,” the Ripple CEO remarked.
Top Lawyer Says Ripple Could Drop Cross-Appeal for a Reduced Fine
Meanwhile, pro-crypto lawyer Fred Rispoli expressed shock at the SEC’s decision to drop its appeal against Ripple without requiring the company to dismiss its cross-appeal first.
However, he speculated that the parties may have reached an agreement that would require Ripple to drop its cross-appeal in exchange for a reduced fine. Attorney Rispoli did not mention anything about the permanent injunction Judge Torres ordered alongside the $125 million fine.
It remains to be seen whether the parties will reach an agreement to drop everything relating to Judge Torres’ civil penalty.
