Ripple will drop its cross-appeal in its prolonged legal battle with the U.S. Securities and Exchange Commission, signaling an end to one of the crypto industry’s most consequential court cases.

Ripple CEO Brad Garlinghouse announced the move on social media on June 27 and also revealed that the SEC is expected to drop its appeal as well.

He wrote:

“We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value.”

The decision follows Judge Analisa Torres’ denial of a joint motion for an indicative ruling earlier this week, marking the second time she dismissed the appeal.

Ripple’s chief legal officer, Stuart Alderoty, explained that the court’s proffered options were to either dismiss its appeal challenging the prior finding on historic institutional sales of XRP or proceed with the appeal and continue litigation.

The SEC sued Ripple in December 2020, alleging it conducted an unregistered securities offering by selling XRP tokens to institutional investors. In July 2023, Judge Torres ruled that while XRP itself is not a security and secondary market sales do not violate securities laws, Ripple’s direct sales to institutional investors did constitute unregistered securities offerings.

The ruling was considered a landmark split decision, with Ripple securing a major victory for the industry in clarifying that programmatic sales and secondary market trading of XRP do not fall under SEC jurisdiction. However, the finding on institutional sales posed potential financial penalties for Ripple.

The SEC initially signaled an intent to appeal the ruling on XRP’s non-security status but later indicated it would drop that appeal. Ripple’s decision to abandon its cross-appeal effectively ends the litigation over the institutional sales ruling, avoiding further legal expenses and uncertainty.

The outcome preserves XRP’s legal clarity in the U.S. market while finalizing the company’s settlement exposure. Ripple is expected to pay a civil penalty related to institutional sales, though the final amount is yet to be determined.

With both appeals set to be withdrawn, the case closes a chapter that has defined crypto’s regulatory landscape for nearly five years. Ripple now plans to shift its focus back to expanding global payment corridors, token utility, and adoption of its XRP Ledger as it advances its vision for an Internet of Value.

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Rep. Gerald E. Connolly, the Ranking Member of the House Oversight and Government Reform Committee, urged the US Treasury Department to abandon plans to establish a strategic Bitcoin reserve and the digital asset stockpile.

In a letter to Treasury Secretary Scott Bessent, Connolly condemned the effort as fiscally irresponsible and politically motivated. He warned that the initiative would serve no clear public benefit while significantly enriching President Donald Trump and his allies.

Trump’s executive order

Connolly’s concerns stem from Trump’s March 6 executive order establishing the Strategic Bitcoin Reserve and US Digital Asset Stockpile, which builds on a broader January 23 directive, “Strengthening American Leadership in Digital Financial Technology.”

The initiative would position the federal government as a major holder of Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). Trump has called the move a way to cement US dominance in digital assets.

Connolly noted Trump’s sharp change in stance on crypto, highlighting that he had previously dismissed digital assets as a “scam” during his first term.

However, his administration is now preparing to allocate federal funds to the sector — an approach Connolly criticized as an attempt to manipulate financial markets for political and personal gain.

He argued that the move amounts to picking winners among digital currencies and creating artificial demand for assets that Trump has financial exposure to.

Conflicts of Interest

The Ranking Member outlined several potential conflicts of interest, including Trump’s reported stake in World Liberty Financial, a digital asset firm that aims to function as a crypto-based lending and investment platform.

Connolly warned that government purchases of crypto could directly benefit Trump’s financial holdings, particularly if the administration prioritizes assets that align with his private investments.

He also pointed to Trump’s involvement in the $TRUMP memecoin, which has surged in value based on speculation surrounding his political statements.

He pointed to reports that entities linked to Trump have generated over $100 million in trading fees from the token, raising concerns that the administration’s crypto initiatives could further drive financial speculation tied to the president.

Lack of Congressional oversight

Connolly also criticized the administration for bypassing Congress in its push to create the reserve, arguing that Trump had not sought legislative authorization nor engaged in consultation with lawmakers about the reserve’s potential risks or benefits.

He warned that without congressional oversight, the initiative could become a tool for political influence rather than a legitimate financial strategy.

He also referenced skepticism from financial experts, citing a Federal Reserve official who reportedly described the plan as “the dumbest idea” ever.

Connolly urged the Treasury Department to immediately halt all plans related to the strategic crypto reserve. He requested a full briefing for House Oversight Committee staff by March 27 and sought clarity on the reserve’s legal justification.

He also requested clarity regarding the process for acquiring and managing the assets, the potential impact on crypto markets, and any financial ties between the White House and digital asset firms.

The Treasury Department has not yet responded to Connolly’s request. His letter signals growing opposition from congressional Democrats, who are increasingly scrutinizing Trump’s expanding involvement in the digital asset industry.

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