Brad Garlinghouse, CEO of Ripple, announced that both the SEC and Ripple will drop their respective appeals, effectively concluding their prolonged legal battle. This development came hours after U.S. District Judge Analisa Torres denied a joint motion for indicative rulings from both parties.
Previously, the judge had rejected a joint motion to amend the final judgment—which sought to reduce penalties from $125 million to $50 million and lift a permanent injunction against Ripple’s future institutional sales of XRP. In her latest ruling, Judge Torres urged the parties to either proceed with appeals to the Second Circuit Court or withdraw them and accept her final judgment.
Following the decision, Garlinghouse confirmed Ripple’s intent to withdraw its appeal challenging the court’s ruling on the company’s historic institutional sales. He also anticipated that the SEC would similarly drop its appeal regarding Ripple’s programmatic sales of XRP.
With both parties withdrawing cross-appeals, Garlinghouse emphasized that this move finally closes the lawsuit, allowing Ripple to focus on "building the Internet of Value."
Will BlackRock Apply for an XRP ETF?
Nate Geraci, President of ETF Store Inc., noted that the lawsuit’s resolution removes regulatory hurdles that previously hindered approvals for spot XRP ETFs. Over a dozen asset managers—including 21Shares and Bitwise—have already filed applications with the SEC for XRP ETFs, but many believed the ongoing litigation would delay approvals.
Geraci argued that dropping the appeals clears the path for XRP ETF approvals, as the SEC can no longer cite the lawsuit to deny or defer pending applications. He further speculated that major issuers like BlackRock could now confidently file for XRP-linked ETFs, given the absence of regulatory barriers.
Despite growing institutional interest in XRP, BlackRock has yet to apply for an XRP ETF. Analysts suggest the SEC lawsuit was a primary deterrent—but with the legal obstacle resolved, BlackRock may soon join the race.
FAQ Section
Q: What does Ripple’s appeal withdrawal mean for XRP?
A: It signals legal clarity, boosting investor confidence and potentially accelerating ETF approvals.
Q: Could the SEC still block XRP ETFs?
A: While possible, the lack of ongoing litigation weakens the SEC’s grounds for rejection.
Q: Why hasn’t BlackRock filed an XRP ETF yet?
A: Regulatory uncertainty was likely a key factor. With the lawsuit resolved, BlackRock may act soon.
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