Ripple Labs has announced it will drop its appeal in the long-running legal fight with the United States Securities and Exchange Commission (SEC) over XRP, signaling the end of a nearly five-year saga. The decision aims to bring closure to one of the crypto industry’s most high-profile cases, potentially unlocking new opportunities for XRP and its community.
Ripple to Put Paid to XRP Saga
Ripple’s choice to abandon its cross-appeal ends a contentious battle that has loomed over XRP since 2020. The company will accept a $125 million fine and a permanent injunction barring future violations of securities laws through institutional XRP sales, as ruled by Judge Analisa Torres in July 2023. This ruling clarified that sales of XRP on public exchanges are not considered securities. However, institutional sales worth $728 million were found to be in violation of regulations.
For the XRP community, this closure brings relief and optimism. Investors and developers anticipate increased institutional interest and market stability, with XRP’s price already showing a modest uptick in trading volume. Ripple can now focus on expanding its cross-border payment solutions, potentially driving wider adoption of XRP in the financial services sector. Ripple CEO Brad Garlinghouse took to his X handle to acknowledge the decision.
“We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value. Lock in,” he said.
The SEC’s History with XRP
The XRP legal battle began in December 2020, when the SEC sued Ripple, alleging that the company had sold $1.3 billion in XRP as unregistered securities. The case, one of the SEC’s most prominent crypto lawsuits, dragged on for nearly five years, creating uncertainty for XRP’s market status. A partial victory was achieved in July 2023 when Judge Torres ruled that programmatic XRP sales to retail investors were not securities, although institutional sales were found to break securities laws.
Both parties initially appealed, but recent mutual agreement to drop appeals marks a turning point. This resolution aligns with the SEC’s recent trend of easing crypto enforcement under the Trump administration, as evidenced by dropped cases against exchanges such as Coinbase, Kraken, and Binance.
