Ripple and SEC Conclude Legal Dispute Over XRP
In a significant development, Ripple Labs and the US Securities and Exchange Commission (SEC) have jointly decided to dismiss their appeals, effectively concluding a protracted legal battle that began in December 2020. The SEC had accused Ripple of selling its XRP token in violation of securities laws, prompting legal action against the firm.
This decision, filed in the US Court of Appeals for the Second Circuit, reinforces US District Judge Analisa Torres’ mixed ruling from 2023, which remains the final and unchallenged judgment in the case. Specifically, while the judge determined that Ripple’s sales of XRP to institutional investors constituted unregistered securities, she also ruled that XRP’s secondary market sales on exchanges did not breach securities laws.
Under the terms of the agreement, both Ripple and the SEC will bear their own legal expenses. This smoothes over the contentious aspects of the case without further appeals complicating matters.
Ripple’s CEO, Brad Garlinghouse, had hinted at the company’s intention to withdraw its cross-appeal, indicating a strategic pivot towards other market opportunities beyond the SEC’s scrutiny of the cryptocurrency sector. His comments reflect a newfound focus for Ripple following the legal resolution.
Accompanying the announcement, Stuart Alderoty, Ripple’s Chief Legal Officer, expressed optimism on social media, suggesting that the conclusion of the lawsuit allows the company to resume its core business activities.
The legal outcome had an immediate impact on XRP’s market performance, with its value surging nearly 11%, bringing the trading price to around US$3.32 (AU$5.09) post-announcement.
This resolution provides Ripple with a partial victory, offering more clarity regarding XRP’s regulatory landscape in the US. Going forward, the company is expected to shift its attention to expanding its international operations, potentially laying the groundwork for future growth and innovation in the cryptocurrency market.
Key Points:
- Legal Battle Concluded: Ripple and SEC have dismissed appeals, ending their long-standing legal dispute.
- Final Ruling Stands: Judge Torres’ 2023 mixed ruling remains intact, imposing penalties on certain XRP sales while ruling the secondary market sales compliant.
- Cost Agreement: Both parties will bear their own legal costs in the conclusion.
- Market Reaction: XRP’s price increased significantly after the announcement, reflecting investor optimism.
- Forward Focus: Ripple signals a shift towards international opportunities following the resolution.
This conclusive legal move marks a pivotal moment for Ripple as it seeks to redefine its trajectory in the cryptocurrency landscape amidst evolving regulatory environments.
