The recent developments in the legal case between the SEC and Ripple Labs regarding XRP have taken an interesting turn. Both parties have come together to request the dismissal of their respective appeals in the ongoing case. This joint stipulation to dismiss the appeals process is currently pending approval from the Court of Appeals.
In a status report filed with the Court of Appeals, the SEC has informed that both the agency and Ripple Labs have submitted a joint stipulation to dismiss their appeals and work towards resolving the XRP case. This move comes after a request made in July to halt proceedings while settlement terms were being finalized.
The parties had previously proposed reallocating Ripple’s $125 million penalty, with $50 million going to the SEC and $75 million back to Ripple. However, this proposal was rejected by Judge Analisa Torres in the Southern District of New York.
With the Court of Appeals now reviewing the joint stipulation for dismissal, once approved, the case will move forward to enforcement. This will require Ripple to pay the $125 million penalty and comply with the terms of the injunction. The ruling by Judge Torres will remain intact, clarifying that XRP is not considered a security in secondary trading, but certain institutional sales will still be subject to securities laws.
Overall, the collaborative effort between the SEC and Ripple Labs to dismiss their appeals signifies a step towards resolving the legal uncertainties surrounding XRP. The final approval from the Court of Appeals will pave the way for enforcement and bring closure to this long-standing legal battle. Stay tuned for further updates on this developing story.