Ripple Withdraws Cross-Appeal, Ends Legal Battle with SEC

Ripple Labs announced the withdrawal of its cross-appeal against the U.S. SEC, signaling the end of years-long litigation that began in 2019. This decision follows Judge Analisa Torres’s ruling in 2023.

The cessation of Ripple’s legal contest affects its institutional operations, yet XRP’s status on public exchanges remains unchanged. XRP’s secondary market trading continues uninhibited by securities classification concerns.

Legal Settlement Concludes with $125 Million Penalty

Ripple Labs, at the center of a protracted legal dispute with the SEC since 2019, has opted to conclude the case, accepting a $125 million civil penalty. Ripple’s CEO, Brad Garlinghouse, confirmed the decision, emphasizing a closure in the public announcement. The move follows Judge Torres’s prior ruling, which exonerated XRP sales to retail investors on exchanges from securities infractions but deemed institutional sales in violation. Ripple’s future operations may comply with a permanent injunction concerning institutional dealings, as articulated by Stuart Alderoty, Chief Legal Officer at Ripple.

The market has reacted positively to the resolution, with stakeholders highlighting the relief from regulatory ambiguity. Garlinghouse stated, “We’re closing this chapter once and for all,” indicating a strategic refocus for Ripple. Alderoty reaffirmed XRP’s status as non-security, declaring “business as usual” at Ripple.

The Ripple case signifies a broader dialogue in crypto regulation. Insights from the Coincu research team suggest that this outcome sets precedence for regulatory clarity but does not shift existing frameworks significantly for unrelated tokens like ETH or BTC. The SEC’s actions against Ripple open pathways for further dialogue and clarity in crypto asset classification and regulatory scopes.

Ripple Case Closure: Implications for Crypto Regulation

Did you know? The 2023 ruling by Judge Torres aligns with past SEC crypto actions yet uniquely preserves Ripple’s XRP retail sales, challenging precedents of regulatory outcomes.

CoinMarketCap reports XRP is currently trading at $2.18, with a market cap of $128.86 billion and a trading volume showing a 54.37% decrease over the last 24 hours. The token saw a slight 0.26% price drop in this timeframe, despite gaining 5.45% over the past week, suggesting fluctuating investor sentiment amid the case’s closure.

The Ripple case signifies a broader dialogue in crypto regulation. Insights from the Coincu research team suggest that this outcome sets precedence for regulatory clarity but does not shift existing frameworks significantly for unrelated tokens like ETH or BTC. The SEC’s actions against Ripple open pathways for further dialogue and clarity in crypto asset classification and regulatory scopes.