The Securities and Exchange Commission (SEC) recently submitted a status report to the Court of Appeals regarding the Ripple case. The report stated that both parties had filed a Joint Stipulation of Dismissal of the appeals, which is currently pending approval by the Court.
On August 7, the SEC filed a Joint Stipulation of Dismissal with the United States Court of Appeals for the Second Circuit, in agreement with defendants Ripple Labs, Brad Garlinghouse, and Chris Larsen. This dismissal resolved the Commission’s appeal and Ripple’s cross-appeal, effectively ending the Commission’s civil enforcement action against the defendants.
It is important to note that the approval for the Joint Stipulation of Dismissal will come from the Court of Appeals for the Second Circuit, rather than the district court. This means that Judge Torres, who was previously involved in the case, will not have any further role in the matter.
Former SEC regional director, Marc Fagel, clarified this point on social media, emphasizing that Judge Torres is no longer part of the Ripple case. This clarification was made in response to online speculation about the court decision awaiting approval.
Bill Morgan, an XRP enthusiast and legal attorney, referred to the recent status report as a mere formality that does not impact the outcome of the Ripple SEC lawsuit. The lawsuit, which began in December 2020, accused Ripple of selling XRP tokens without proper registration as securities. With the agreement to dismiss their appeals, the case has effectively concluded.
Following the Joint Stipulation of Dismissal, Stuart Alderoty, Ripple’s chief legal officer, announced that the dismissals signal the end of the five-year-old lawsuit. Additionally, the SEC has also dismissed its lawsuits against popular crypto exchanges such as Binance, Coinbase, and Kraken.
In summary, the Ripple case has come to a close with the mutual agreement to dismiss appeals, marking the end of a lengthy legal battle between Ripple and the SEC. The developments in this case highlight the evolving regulatory landscape surrounding cryptocurrencies and the importance of compliance within the industry.