- Ripple and SEC end years-long battle with appeals dismissed.
- XRP jumps to $3.35 after Ripple’s court victory news.
- Judge Torres’ ruling stands as final word in Ripple case.
Ripple Labs and the US Securities and Exchange Commission have officially ended their years-long legal dispute after jointly moving to dismiss their appeals. A filing to the Second Circuit Court of Appeals confirmed that the SEC withdrew its appeal and Ripple dropped its cross-appeal, bringing the case to a close.
According to Ripple’s chief legal officer, Stuart Alderoty, the decision followed a Commission vote earlier in the day. In a post on X, he said the company was ready to shift its attention back to business operations. The court also indicated that each party will meet their legal expenses and charges.
This case started in 2020, when the SEC accused Ripple of selling XRP as an unregistered security. In July 2023, Judge Analisa Torres decided that the sales of XRP on public exchanges were not securities transactions but concluded that sales to institutions did violate federal securities laws.
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Ripple has been fined $125 million, which is much lower than the $2 billion requested by the SEC. Both sides appealed to the ruling, although months of settlement negotiations later led to the decision to forego further litigation.
Settlement Process and Market Reaction
Earlier this year, the appeals process was paused as settlement talks progressed. By May, both sides had reached an agreement to dissolve the injunction and reduce the fine, though Judge Torres refused to alter the penalty in June. She emphasized that Ripple would have to abide by the securities laws regardless of the shift in regulatory enforcement.
The case ending is in line with a bigger shift in American crypto policy since President Donald Trump has suggested a less aggressive approach to regulation. According to this strategy, the SEC has recently dismissed a number of cases against blockchain companies.
Following the announcement of the dismissal, XRP surged sharply from around $3.00 to $3.35, gaining 11.71 percent within 24 hours. The trading volume increased by almost 175 percent to $11.66 billion, and the market capitalization was up to $199 billion. The rally reflected the newfound investor confidence following the years of legal uncertainty that had been removed.
With the appeals dismissed, Judge Torres’s 2023 ruling now stands as the final determination, offering clarity for Ripple and the broader market on how certain token sales are classified under US securities regulations.
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