- SEC and Ripple Labs jointly end their four-year legal battle, both dropping appeals and bearing their own costs.
- $125 million penalty and injunction from original ruling remain unchanged.
- Ripple’s XRP sees positive market reaction, reflecting investor confidence.
The SEC and Ripple Labs formally ended a four-year legal case over XRP, announcing a mutual withdrawal of appeals on Thursday.
This resolution cements a $125 million fine and clarifies regulatory stances, impacting XRP’s recent price surge and potential future token classifications.
Ripple Ends Legal Battle by Upholding 2023 Ruling
The SEC and Ripple Labs reached an agreement to end legal proceedings over XRP. This case began in 2020 when the SEC filed a suit under former Chairman Jay Clayton. The mutual dismissal keeps the 2023 ruling by Judge Analisa Torres that Ripple’s institutional sales of XRP were securities violations. Legal insights on recent case developments.
Ripple will pay $125 million, while each party bears its own legal fees.
“The parties are incentivized to resolve outstanding appeals to avoid further court involvement or potential requests for additional extensions.” — Marc Fagel, Former SEC Attorney
Ripple’s XRP has seen a market rally, confidently surpassing $3, as legal uncertainties dissipated. Ripple’s CEO Brad Garlinghouse has not commented publicly yet, though optimism is prevalent among investors. Marc Fagel, a former SEC attorney, acknowledged the legal closure, saying, “resolution of outstanding appeals was crucial for closing this legal chapter.”
XRP’s Market Rally: $3 Billion Cap Increase Post-Settlement
Did you know?
Ripple’s legal case marked a turning point, influencing the classification of crypto assets under U.S. securities laws. Prior cases, such as Telegram’s, similarly shaped regulatory landscapes.
CoinMarketCap reports XRP traded at $3.31, with a market cap of $196.16 billion and a 24-hour trading volume of $8.62 billion—an 84.87% increase. XRP’s 30-day price rose by 43.83%, showing significant investor confidence post-settlement.
Coincu researchers indicate that the resolution enhances regulatory clarity for crypto tokens like XRP. Experts suggest that the outcome could encourage institutional adoption, improve market stability, and inform SEC’s future token sales assessments. SEC’s future token sales assessments.
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Source: https://coincu.com/news/ripple-sec-lawsuit-settlement/