Ripple Drops Cross-Appeal, Paving the Way for Closure in Landmark SEC Case

Ripple Drops Cross-Appeal, Paving the Way for Closure in Landmark SEC Case
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Ripple Labs has officially announced it will drop its cross-appeal in its long-running legal battle with the U.S. Securities and Exchange Commission (SEC), signaling a major step toward ending one of the most closely watched cases in the crypto industry. The SEC is expected to follow suit, potentially bringing a close to a saga that has shaped the regulatory landscape for digital assets.

A Four-Year Legal Journey Nears Its End

The dispute began in December 2020, when the SEC sued Ripple, alleging the company had raised $1,3 billion through unregistered sales of its XRP token. Ripple countered, arguing that XRP is a digital asset, not a security, and therefore not subject to the same regulations.

In July 2023, Judge Analisa Torres delivered a nuanced ruling: XRP itself was not classified as a security, but Ripple was found liable for securities violations in its institutional sales, resulting in a $125 million penalty . Both parties appealed aspects of the decision, with the SEC seeking to overturn the finding on XRP’s status and Ripple challenging the penalty.

Settlement Talks and Final Decisions

Earlier this year, both sides proposed a reduced $50 million settlement, but the court rejected the deal, leaving the original $125 million penalty in place . With Ripple now dropping its cross-appeal and the SEC expected to do the same, the legal focus shifts to compliance with the existing penalty and a permanent injunction on Ripple’s institutional sales .

Ripple’s Chief Legal Officer, Stuart Alderoty, emphasized that the legal status of XRP in the open market remains unchanged: XRP is not considered a security. “The ball is back in our court,” Alderoty stated, highlighting that Ripple will continue business as usual while adhering to the court’s ruling .

Market and Industry Impact

The news has already had a positive effect on XRP’s price, which saw a 3% uptick following the announcement . More broadly, the resolution of this case provides much-needed clarity for the crypto sector, especially regarding how digital assets are classified and regulated in the U.S.

Brad Garlinghouse, Ripple CEO, described the outcome as a significant win for the company, noting that the final penalty is a fraction of what the SEC initially sought. The conclusion of this case is expected to influence future regulatory actions and set a precedent for other crypto projects facing similar scrutiny .

What’s Next for Ripple and XRP?

With the legal uncertainty largely resolved, Ripple is poised to refocus on its core business and global expansion. The company’s leadership has reiterated its commitment to compliance and innovation in the digital payments space.

For the broader crypto community, the end of the Ripple-SEC battle marks a turning point, offering a clearer regulatory path and renewed confidence in the U.S. market.

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