- Ripple ends its legal battle with the SEC by withdrawing its cross-appeal on XRP sales.
- Court ruling keeps XRP retail trading outside securities law but imposes penalties on Ripple.
- The case’s conclusion provides regulatory clarity for digital asset offerings in the U.S.
Ripple Labs has announced it is withdrawing its cross-appeal against the U.S. Securities and Exchange Commission (SEC), a decisive move that brings one of the crypto market’s most-watched legal sagas to a close.
The announcement from Ripple CEO Brad Garlinghouse marks the end of nearly four years of legal conflict over the classification and sale of the XRP token.
Why Did Ripple Withdraw the Appeal Now?
The move to end the legal battle comes just after a key court order from Judge Analisa Torres. On June 26, she denied a joint request from both Ripple and the SEC that would have amended the existing injunction against the company and cut its financial penalty by more than half.
With that path to a revised settlement blocked, Ripple has chosen to accept the existing court-ordered restrictions on its institutional XRP sales and what is likely to be a $102.6 million penalty, rather than continue the fight. In a statement, Garlinghouse confirmed the firm intends to “close this chapter once and for all,” with no further court dates anticipated.
Related: Ripple’s Escrow Dilemma After Torres Ruling: Who Really Owns the 37 Billion XRP?
Garlinghouse confirmed in a statement that the firm intends to “close this chapter once and for all,” with no further court dates anticipated. Additionally, the SEC is expected to formally withdraw its appeal in the coming weeks, which will complete the process.
2023 Ruling Maintains Clarity for XRP Trading
The 2023 ruling that ruled XRP sales on exchanges are not considered securities remains in force. This outcome has brought greater regulatory clarity for retail XRP trading activities. The conclusion of this case leaves the ongoing ruling in place, mandating Ripple’s compliance with federal securities law on institutional sales.
The SEC’s initial lawsuit, filed in December 2020, accused Ripple of offering XRP as an unregistered security. Regulators argued that Ripple’s actions denied investors essential details needed to make informed decisions regarding the token and the company’s business.
Related: SEC v Ripple: How This Settlement Process Is Going
According to prior court filings, the SEC argued that investors lacked access to key information about both XRP and Ripple’s operations.
With the withdrawal of all pending appeals, the Ripple case is set to become a major case in enforcing U.S. digital asset regulation. The absence of further legal proceedings points to the conclusion of a case that has impacted the application of securities law for blockchain-based assets.
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