The U.S. Securities and Exchange Commission (SEC) has abandoned its appeal against Ripple, which lawyer John Deaton called the "final exclamation point" confirming that XRP Tokens are considered electronic commodities, not securities. However, Ripple still faces $125 million in disgorgement due to improper XRP sales. The SEC's move may help Ripple negotiate a reduction in this penalty.

Deaton, who previously represented XRP holders, believes their interests were not properly represented in the SEC's lawsuit. He plans to run for a Senate seat to represent Massachusetts.

Regarding Ripple's cross-appeal, this was filed in October 2024. The SEC may not want Ripple to continue appealing, as the ruling could affect the commission's authority and impact other cases. This gives Ripple an advantage in settlement negotiations.

However, there is still a ban from Judge Analisa Torres, preventing Ripple from selling XRP to institutional investors to avoid securities law violations. If Ripple wants to issue XRP directly to banks in the U.S., it needs to overcome this ban.

Deaton previously viewed this lawsuit as an attack on the entire cryptocurrency industry. He emphasized that Ripple did not leave the U.S. even when sued by the SEC, demonstrating that they are a U.S.-based company. This may help Ripple in upcoming negotiations.