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Ripple's Q1 2025 report outlines its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The company announced that the SEC has informed them of its intention to withdraw its appeal regarding the high-profile XRP lawsuit. This information, revealed by XRP lawyer Bill Morgan, has sparked discussions among cryptocurrency enthusiasts, though the SEC has not yet officially confirmed this news.
The Q1 2025 Ripple report disclosed that the SEC approved withdrawing its appeal in an ongoing legal dispute, showing possible case-resolution prospects. The report revealed that the SEC planned to withdraw its appeal and reduce its proposed $125 million penalty to $50 million. Additionally, the SEC agreed to request the court to vacate the injunction against Ripple, pending internal commission approval.
The report reads, “In Q1, the SEC informed Ripple of its intent to withdraw its appeal – a clear victory for both Ripple and the broader crypto market. Following Ripple’s decision to withdraw its own cross-appeal, the SEC agreed to reduce the proposed penalty from $125 million to $50 million and request the court vacate the injunction, pending SEC Commission approval. This outcome reaffirmed what had been clear from day one: the facts and the law were on Ripple’s side.”
However, the SEC has not yet corroborated this announcement, creating uncertainty over the appeal's true status. Despite this, the development is seen as a significant positive for Ripple and its ongoing mission to establish XRP as a non-security asset.
Bill Morgan, a well-known XRP lawyer, was among the first to highlight this discrepancy. In a recent post on X, Morgan emphasized that, to his knowledge, the SEC has not publicly confirmed the withdrawal of its appeal. He noted that while the Court of Appeals granted a joint motion to pause the appeal, the SEC commissioners have yet to vote on the matter, adding another layer of complexity to the situation.
Morgan's reports indicate a possible communication gap between the SEC and Ripple or a tactical Ripple strategic move by Ripple to pressure the SEC to confirm its withdrawal steps. The uncertain status of XRP for financial products continues to burden the entire crypto market sector while investors evaluate its future viability.
In December 2020, the SEC filed its initial lawsuit against Ripple Labs, accusing the company and its leadership team of conducting an unregistered securities offering that raised more than $1.3 billion.
Judge Analisa Torres issued a July 2023 ruling that declared XRP non-security for retail trading on exchanges, yet determined that institutional sales of XRP broke securities laws. The dual positive and negative court decisions created a foundation for the ongoing appeals.
