Key Insights
- Ripple and the US SEC have both filed to dismiss their appeals. This ends the multi-year legal battle over XRP.
- The $125 million fine against Ripple and restrictions on institutional XRP sales, however, will remain in place.
- XRP price surged after the news, in a show of fresh investor confidence.
The multi-year Ripple vs US SEC legal case has finally come to an end. Per 7 August reports, Ripple and the US SEC jointly filed to dismiss their respective appeals in the XRP lawsuit. This thus marks the official end of one of the most infamous legal battles in crypto history.
Ripple vs US SEC And The Case That Shaped Crypto Regulation
Ripple vs US SEC saga started nearly five years ago. The agency sued Ripple that it had sold its XRP token as an unregistered security. This was in violation of federal securities laws.
Three years after the lawsuit was filed, in July 2023, New York federal judge Analisa Torres delivered a partial ruling. She declared that Ripple’s XRP sales to institutional investors did violate securities laws.
However, programmatic sales to the public, as well as secondary market transactions, did not. This mixed ruling was seen as a partial win for both sides.
Still, the ruling left the door slightly open for more legal back and forth. The SEC filed an appeal to challenge parts of the ruling it had lost. On the other hand, Ripple responded with a cross-appeal rejecting the $125 million civil fine.
Ripple Vs US SEC Appeals Dropped, Ruling Now Final
Fast forward to August of this year, both parties have agreed to drop their appeals. Ripple vs US SEC battle has come to an end.
The US Court of Appeals for the Second Circuit accepted the joint dismissal on Thursday. It stated that each side will bear its legal fees and costs.
There are now no further appeals in play. Judge Torres’ initial ruling now stands as the final word on the matter. Ripple must pay the $125 million fine, and the restrictions on institutional XRP sales are still in place.
Despite hopes for a reduced penalty or lifted injunction earlier this year, Judge Torres denied Ripple’s request in June.
She pointed out that Ripple still needs to comply with federal securities laws. This is regardless of any changes in the SEC’s approach to securities law enforcement.
What the End of Ripple vs. US SEC Means for XRP
The closure of the Ripple vs US SEC case has been a source of positive sentiment in the XRP market so far. Within hours of the announcement, XRP saw an 11% price increase that pushed it back above the $3 mark.
According to CoinGecko, XRP hit a high of $3.56 in July. This happened partially due to the hype around a final settlement.
The lawsuit has ended with Ripple still facing certain blocks. However, the resolution is a major win because it removes one of the biggest legal clouds.
It has hung over the company for years. Investors now have more clarity on how XRP is classified, at least in the United States.
Ripple’s Next Steps Under the Legal Ruling
Now, with the legal battle behind it, Ripple can focus on growth. However, it must avoid unregistered institutional XRP sales to stay compliant. The $125 million fine is to be paid to the US Treasury.
Also, Ripple remains under a court order to follow existing securities laws. Despite these limitations, Ripple’s leadership seems to be optimistic.
Stuart Alderoty, Ripple’s Chief Legal Officer, confirmed the appeal dismissal on X and said, “The end…and now back to business.”
Overall, the Ripple vs US SEC case may be over. However, its effects are likely to affect the crypto industry for longer.
The final ruling is mostly good news, and XRP’s recent price performance shows the market is ready to move forward. Now that one of crypto’s biggest legal battles has finally settled, attention can return to growth and partnerships.
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