Ripple CEO drops appeal against SEC in hopes of ending years-long legal battle

Ripple CEO Brad Garlinghouse plans to put an end to the cryptocurrency company's legal battle with the US Securities and Exchange Commission (SEC). The firm is withdrawing its cross appeal against the SEC and now hopes the SEC will reciprocate, Reuters reports.

The core disagreement centered on whether Ripple's XRP token qualifies as a security. Disputes on this issue have been going on for several years. Initially, the commission accused Ripple of violating the law through the sale of its token. In 2023, the court ruled that XRP trading on public exchanges is permissible, but has a number of restrictions. Thus, the company's $728 million in direct sales to institutional investors violated regulations, Reuters notes.

Both sides appealed, but later agreed to settle the dispute while lifting the injunction and reducing the $125 million fine imposed on Ripple. However, their appeal was denied on Thursday.