Ripple Ends SEC Lawsuit with Cross-Appeal Withdrawal
- Ripple withdraws cross-appeal in the SEC case.
- XRP’s legal status remains unchanged as “not a security”.
- Ripple pays $125 million penalty; potential for XRP ETFs.
Ripple CEO Brad Garlinghouse confirmed the company will withdraw its cross-appeal in the SEC lawsuit, signaling an end to the long-standing legal case. The decision was announced on X (formerly Twitter), emphasizing the focus on the “Internet of Value”.
Ripple’s decision to withdraw its cross-appeal against the SEC concludes a prolonged legal battle. The move stabilizes XRP’s market standing and may boost institutional interest, leading to potential regulatory clarity for similar digital assets.
Ripple’s Strategy
Ripple’s withdrawal of its cross-appeal marks the end of its legal dispute with the SEC that began in December 2020. Brad Garlinghouse shared on X that closing this chapter allows Ripple to focus on the “Internet of Value”. Stuart Alderoty and Bill Morgan provided legal perspectives, asserting that XRP is not a security in the context of public sales, though some institutional sales differ.
“Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said. We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value. Lock in.” — Brad Garlinghouse, CEO, Ripple Labs.
The financial impact includes Ripple agreeing to a $125 million penalty, and the cryptocurrency experienced a 5% rise following the resolution announcement. Market analysts forecast increased liquidity and potential growth in XRP-related DeFi activities as regulatory uncertainty decreases.
Potential benefits include a pathway for XRP ETFs, potentially increasing institutional adoption. Historical SEC actions show similar cases often end in settlements or operational adjustments, but Ripple’s outcome might influence future token sale classifications, affecting broader industry practices.
The conclusion of Ripple’s legal case might pave the way for spot XRP ETFs, influencing regulatory strategies for digital assets. The judicial decision favoring Ripple regarding programmatic sales could set precedents, prompting increased trading volumes and bolstered Total Value Locked in DeFi projects involving XRP.
