XRP experienced a notable 3.36% price increase to $2.18 on Friday following Ripple CEO Brad Garlinghouse's announcement that the company would withdraw its cross-appeal against the U.S. Securities and Exchange Commission (SEC). This development marks a potential conclusion to the prolonged legal dispute that began in December 2020.

Ripple Shifts Focus to Business Operations

Garlinghouse stated via social media platform X that Ripple is "closing this chapter once and for all" to concentrate on developing its value transfer network. The CEO's declaration came one day after a U.S. district court rejected a joint request from both parties to modify previous rulings regarding XRP's regulatory status and reduce financial penalties.

【Market Impact】XRP's price movement contrasted with its 4.44% decline over the previous 30 days, demonstrating immediate investor response to the legal developments. The cryptocurrency's trading volume spiked following the announcement, indicating renewed market interest.

Legal Landscape Remains Unchanged

Ripple's chief legal officer Stuart Alderoty emphasized that the company's decision doesn't alter XRP's established legal standing. "XRP's status as not a security remains unchanged," Alderoty confirmed, while noting business operations would continue unaffected.

The SEC has yet to formally confirm it will drop its own appeal, though Garlinghouse indicated this expectation. Should both parties withdraw appeals, it would effectively conclude a four-year legal battle that began when the SEC alleged Ripple raised $1.3 billion through unregistered securities offerings.

Regulatory Resolution With Financial Implications

——This settlement represents a significant reduction from initial SEC demands—— The $125 million civil penalty stands at just 6.25% of the regulator's original $2 billion claim. Legal experts suggest the resolution could establish important precedents for cryptocurrency regulation while allowing Ripple to focus on product development.

Industry analysts note the case's conclusion may remove a major uncertainty factor for XRP investors. However, some caution that broader regulatory clarity for cryptocurrencies in the U.S. remains pending, with multiple similar cases still working through the judicial system.