Ripple to End Legal Battle with SEC, Focus on Building the Internet of Value
Ripple, a leading blockchain company, has made the decision to drop its cross-appeal in the ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). This move signifies the nearing conclusion of one of the most significant court cases in the cryptocurrency industry.
In an announcement on social media, Ripple CEO Brad Garlinghouse revealed that the company will be closing this chapter of the legal battle with the SEC. Garlinghouse also mentioned that the SEC is expected to drop its appeal as well. He emphasized the importance of focusing on building the Internet of Value moving forward.
The decision to withdraw the cross-appeal comes after Judge Analisa Torres denied a joint motion for an indicative ruling earlier in the week, marking the second dismissal of the appeal. Ripple’s chief legal officer, Stuart Alderoty, explained that the court presented two options: dismiss the appeal challenging the prior finding on historic institutional sales of XRP or continue with the appeal and prolong the litigation.
The SEC filed a lawsuit against Ripple in December 2020, accusing the company of conducting an unregistered securities offering by selling XRP tokens to institutional investors. In July 2023, Judge Torres ruled that although XRP itself is not a security and secondary market sales do not violate securities laws, Ripple’s direct sales to institutional investors constituted unregistered securities offerings.
While the ruling was seen as a victory for Ripple in clarifying certain aspects of the case, it also posed potential financial penalties for the company. The SEC initially indicated its intention to appeal the ruling on XRP’s non-security status but later decided to drop that appeal. By dropping its cross-appeal, Ripple effectively puts an end to the litigation over the institutional sales ruling, avoiding further legal expenses and uncertainty.
The resolution of the legal battle ensures legal clarity for XRP in the U.S. market while also finalizing Ripple’s settlement exposure. The company is expected to pay a civil penalty related to institutional sales, although the exact amount is yet to be determined.
With both parties set to withdraw their appeals, the conclusion of this case closes a chapter that has significantly impacted the regulatory landscape of the cryptocurrency industry over the past five years. Ripple now plans to refocus its efforts on expanding global payment corridors, increasing token utility, and driving adoption of its XRP Ledger as it continues to advance its vision for an Internet of Value.