Ripple Marks Legal Victory as SEC Moves to Vacate XRP Injunction

Ripple's latest Q1 2025 XRP Markets Report signals a turning point for the company and the broader crypto market. With the SEC-Ripple case nearing closure, regulatory uncertainty around XRP appears to be easing. Ripple disclosed that the U.S. Securities and Exchange Commission has agreed to request the court vacate a previously sought injunction—pending final SEC Commission approval.

This development follows the SEC’s decision to withdraw its appeal, marking what Ripple described as “a clear victory” for both the company and the crypto industry. Ripple also dropped its own cross-appeal, and the SEC subsequently reduced the proposed penalty from $125 million to $50 million. Ripple emphasized in the report, “The facts and the law were on Ripple’s side.”

Bill Morgan, an attorney and prominent XRP advocate, highlighted that this may be the first time Ripple has publicly confirmed the SEC’s intention to vacate the injunction. The SEC had initially sought a permanent ban on Ripple from violating securities laws, stemming from its 2020 lawsuit.

The long-standing legal battle began when the SEC accused Ripple Labs, CEO Brad Garlinghouse, and Executive Chairman Chris Larsen of raising $1.3 billion through unregistered XRP sales. A pivotal ruling in July 2023 determined XRP is not a security in retail exchange sales, though institutional sales did breach securities laws. In a further win for Ripple, the SEC dropped charges against the executives in October 2023.

The resolution strengthens Ripple’s position and offers renewed clarity for XRP’s regulatory status. As U.S. digital asset policies evolve, this outcome could influence how regulators approach other crypto assets moving forward.