TLDR
Ripple ends 4-year SEC lawsuit, focusing on XRP’s role in cross-border payments.
XRP price surges to $2.149 as Ripple drops its cross-appeal against SEC.
SEC to drop its appeal, marking the closure of Ripple’s legal battle over XRP.
Ripple settles for $50M after legal saga, clearing XRP’s status for retail investors.
Ripple has officially confirmed that it will drop its cross appeal against the U.S. Securities and Exchange Commission (SEC), effectively bringing an end to the four-year-long legal battle over the status of its cryptocurrency, XRP. This announcement marks a significant shift in the ongoing dispute between the crypto company and the federal agency.
Ripple CEO Brad Garlinghouse made the announcement, stating that the company will close this chapter and focus on its core mission: building the Internet of Value. The SEC is expected to follow suit by dropping its own appeal, which had been part of the ongoing litigation.
XRP Lawsuit Ends After A Long-Running Legal Battle
The legal saga began in December 2020 when the SEC filed a lawsuit against Ripple, accusing the company of selling unregistered securities through the sale of XRP tokens. The case has been one of the most high-profile legal challenges in the crypto industry, with Ripple vehemently denying the SEC’s claims.
In 2023, U.S. District Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP to retail investors did not constitute securities transactions. However, she also ruled that XRP sales to institutional investors did violate securities laws. This ruling led to Ripple being ordered to pay a $125 million penalty.
Ripple appealed this decision, seeking to reduce the penalty and challenge the injunction that limited its ability to sell XRP. The SEC, under former Chair Gary Gensler, had initially demanded a $2 billion fine, but the courts reduced this to $125 million, with Ripple and the SEC agreeing to settle for $50 million.
Court Ruling and Settling the Dispute
Despite their earlier attempts to negotiate a settlement, Ripple and the SEC faced multiple rounds of pushback in court. Judge Torres recently denied the joint motion to lower the penalty further or remove the injunction, which was the final blow to any hopes of reaching a resolution through the courts.
In a turn of events, Ripple decided to abandon its cross-appeal, effectively ending the litigation. The decision to drop the appeal followed Judge Torres’ suggestion that both parties could bring the case to a close by dropping their respective appeals. This move signals the end of the legal dispute, with both parties now choosing to move forward without further litigation.
Ripple’s legal team has confirmed that this decision will close the case and allow the company to refocus on its business objectives, particularly in promoting the use of XRP for cross-border payments and financial services.
XRP Price Response to the News
In reaction to the XRP lawsuit end announcement, the price of XRP saw a brief rally, reaching a high of $2.149. This surge in price was partly attributed to the news of the legal resolution. XRP’s price had been relatively stable prior to the announcement but saw an uptick in trading volume as investors reacted positively to the news of a settlement.
Despite the long-running nature of the legal battle, Ripple’s ability to finally settle the case has brought a sense of relief to many in the crypto community. The resolution provides clarity for XRP’s legal status, especially in terms of its classification as a non-security for retail investors.
Ripple’s decision to drop the appeal has resolved one of the most contentious and widely followed legal cases in the crypto world. With this chapter closed, Ripple can now focus on its future endeavors, particularly the development and expansion of its XRP-powered solutions for cross-border payments.
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