The United States Securities and Exchange Commission (SEC) and Ripple Labs have agreed to dismiss their appeals in the Second Circuit Court of Appeals, bringing their long legal battle to a close. This vital development provides clarity about XRP’s regulatory status in the crypto industry.
Legal Saga Comes to an End
The lawsuit began in 2020 when the SEC accused Ripple of selling XRP as an unregistered security. In July 2023, U.S District Judge Analisa Torres ruled that transactions involving XRP on secondary markets are not considered securities offerings, while sales to institutional investors are.
Although both parties appealed this decision, they have now chosen to drop their appeals, agreeing to cover their costs. This dismissal marks the end of one of the most significant enforcement actions in crypto history. Earlier in June, Judge Torres rejected a proposed settlement that would have reduced Ripple’s penalties.
The case has had many ups and downs, including a pause in the appeals process earlier this year when Ripple indicated it might drop the case. With a change in leadership at the SEC, the agency has recently dropped over a dozen cases and investigations into crypto companies, indicating a shift in its regulatory approach.
Reaction to Court Ruling
Owing to the dismissal, Judge Torres’s ruling from July 2023 will now be the final decision. This ruling states that XRP transactions in secondary markets are not considered securities, but sales to institutions are counted as unregistered securities offerings.
Following the news, XRP reacted positively, surging 11% to $3.35 according to data from CoinMarketCap.The new agreement is essential for the crypto industry because it clarifies the rules for digital assets. Recent changes in crypto regulation are helping investment firms operate more easily in the US.
The SEC and Ripple Labs’ joint dismissal of appeals ends a long legal dispute and clarifies XRP’s regulatory status. This decision will have significant effects on the crypto industry, shaping the rules for digital assets and guiding investment firms. With XRP’s price rising to $3.35, the market’s reaction highlights the importance of this outcome, solidifying XRP’s place as a leading digital asset with a market cap of $199.01 billion.
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