The legal battle between Ripple and the Securities and Exchange Commission (SEC) has finally come to an end with the US Court of Appeals for the Second Circuit issuing a mandate on Aug. 22 approving the dismissal of the appeals in the case. This marks the official conclusion of one of crypto’s most significant legal battles.
Despite the news of the dismissal, the price of XRP only saw a slight increase of less than 1% within one hour, trading at $3.0694 at the time of the press. The dismissal follows a joint filing on Aug. 7, in which Ripple and the SEC agreed to end their appeals after a formal Commission vote.
The agreement between Ripple and the SEC signifies a major victory for Ripple as XRP will not be classified as a security. This settlement brings an end to a dispute that began in December 2020 when the SEC sued Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen for allegedly conducting an unregistered securities offering through XRP sales.
Ripple’s Chief Legal Officer, Stuart Alderoty, expressed relief at the conclusion of this chapter, which had overshadowed the crypto industry for almost four years. The settlement also removes regulatory uncertainty surrounding XRP’s status, which bodes well for the approval of XRP exchange-traded funds (ETFs).
In February, Bloomberg ETF analysts predicted a 65% chance of approval for spot XRP ETFs in the US. Polymarket bettors initially placed the odds of approval happening this year at 98%, but this percentage decreased after the SEC delayed decisions on multiple filings. Despite the fluctuations in odds on the prediction market, analysts remained confident in the approval of XRP ETFs, citing a likelihood of 90% or higher.
Commissioner Caroline Crenshaw’s opposition to the approval caused some uncertainty, leading to a decrease in odds on the prediction market. However, analysts reassured that Crenshaw’s dissenting votes were insignificant as she was outnumbered, maintaining a high probability of approval for XRP ETFs.
Overall, the conclusion of the legal battle between Ripple and the SEC has paved the way for regulatory clarity around XRP and increased the likelihood of approval for XRP exchange-traded funds. This development is a positive step forward for Ripple and the broader crypto industry.