Ripple Labs is preparing to engage in a legal battle with the United States Securities and Exchange Commission (SEC) following the SEC’s decision to appeal a previous court ruling. Brad Garlinghouse, the CEO of Ripple, has emphasized the company’s commitment to challenging the SEC’s stance in court, stating that the legal determination regarding XRP ’s classification as a non-security remains effective despite the appeal.
In July of the previous year, a New York District Court ruled that the XRP token, associated with Ripple, is not classified as a security when sold on public cryptocurrency exchanges. This ruling concluded a lawsuit filed by the SEC in 2020, which accused Ripple of selling unregistered securities through XRP . However, the court did find in favor of the SEC regarding XRP sales to institutional investors, prompting a fine of $125 million against Ripple for those transactions. Recently, Ripple and the SEC reached an agreement to delay the enforcement of the fine as the SEC signaled its intent to appeal.
Ripple’s Chief Legal Officer expressed disappointment at the SEC’s move, describing the lawsuit as irrational from the outset. He indicated that the company is also considering a counter-appeal. Legal experts predict a lengthy process for this case, with initial briefs expected to be filed early next year and a decision from the appellate court not anticipated before early 2026.
Meanwhile, XRP ’s market performance has been affected, experiencing a 10.2% decline over the past 24 hours and currently trading around $0.53. The outcome of this ongoing legal dispute is likely to have significant implications for the future of Ripple and broader cryptocurrency regulations.
