XRP Lawsuit Ends as Ripple and SEC Drop Appeals

The XRP lawsuit saga has finally come to a close, with Ripple and the U.S. Securities and Exchange Commission (SEC) officially deciding to drop their respective appeals. This resolution ends a courtroom standoff that has lasted nearly five years and held significant implications across the crypto ecosystem.

Ripple CEO Brad Garlinghouse publicly announced the news on June 27 via social media, stating that both Ripple and the SEC had agreed to abandon any further legal challenges. “We’re closing this chapter once and for all,” Garlinghouse noted, highlighting the company’s plans to refocus on fostering global financial innovation and strengthening the XRP Ledger’s role in building the Internet of Value.

This decision follows Judge Analisa Torres’ denial of a joint motion that had sought an amended ruling in the case. The judge had previously issued a partial but pivotal decision in July 2023, concluding that XRP was not a security in itself, especially in transactions via secondary markets. However, she also determined that Ripple’s institutional sales of XRP had violated securities laws due to the lack of registration.

In response to the judge’s stance, Ripple and the SEC presented the court with their appeals. But this week, Ripple announced its withdrawal from contesting the judge’s prior ruling regarding institutional sales, and that the SEC is also set to abandon its appeal regarding XRP not being classified as a security.

This development was further clarified by Ripple’s Chief Legal Officer, Stuart Alderoty. He revealed that the company had considered its options: either to proceed with a long and costly appeal against the court’s finding or to forgo future legal entanglements by dropping the matter. Ripple opted for the latter, prioritizing business clarity and innovation over prolonged litigation.

The SEC had originally filed its lawsuit against Ripple back in December 2020, accusing the firm of conducting an unregistered securities offering worth billions through the sale of XRP to institutional investors. This case sparked considerable debate across the cryptocurrency industry and became a watershed moment in the SEC’s enforcement approach to digital assets.

The July 2023 verdict brought partial relief to Ripple and the broader crypto community, affirming that secondary market activity involving XRP did not constitute securities transactions. This ruling was seen as a landmark in defining U.S. crypto regulation boundaries.

Despite the favorable clarity on secondary sales, Ripple faces a civil penalty related to its institutional sales. The specifics of that financial obligation are yet to be fully resolved, but the resolution of all appellate challenges avoids further legal uncertainty and costs for both parties.

Industry watchers view this final settlement as a major turning point. Not only does it lift a regulatory cloud over XRP, but it also lets Ripple get back to building out its core blockchain infrastructure. According to the company, its next chapter will focus on advancing international payment solutions, expanding utility for XRP, and advocating for more transparent digital asset guidelines globally.

This conclusion underscores a vital message: legal clarity is critical for cryptocurrency innovation. Ripple’s decision to end its appeal underscores a strategy shift from litigation to leadership. As the crypto sector matures, Ripple’s experience may serve as a blueprint for other blockchain firms navigating uncertain regulatory environments.

Related: Expert Advice: Sell XRP If You’re Confused

Links preserved from the original content:

• Ripple
• Brad Garlinghouse
• XRP
• joint motion
• dismissed the appeal
• abandon its cross-appeal