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Ripple Drops Cross-Appeal in SEC Case, Bringing 4-Year Legal Saga Over XRP Token Sales to an End
Ripple Labs has made the surprising decision to withdraw its cross-appeal against the U.S. Securities and Exchange Commission (SEC). This move is expected to bring closure to a long-running legal battle that has been ongoing since December 2020. The case initially accused Ripple of offering unregistered securities in the form of XRP token sales.
The SEC had demanded $2 billion from Ripple, while the company countered with an argument that XRP was not a security for secondary market transactions. This led to a partial summary judgment granted by U.S. District Judge Analisa Torres in July 2023, ruling that XRP sales on public exchanges were not securities transactions.
However, the court imposed a permanent injunction requiring Ripple to comply with federal securities laws in future institutional sales of XRP, which resulted in a $125 million civil penalty being imposed upon the company.
Ripple CEO Brad Garlinghouse has confirmed the decision to withdraw its cross-appeal on his official social media handle. The move is seen as a major victory for the crypto industry as it sets a precedent that the SEC’s enforcement actions could be challenged and revised through court intervention.
The Ripple case has had far-reaching implications for the broader crypto market, with many projects re-examining their token sale strategies in light of the ruling. This conclusion marks the end of a prolonged legal saga that has dragged on since 2020, leaving no doubt about XRP’s non-security status in secondary market transactions.
In response to the court’s original decision, Ripple CEO Garlinghouse emphasized the company’s commitment to compliance with federal securities laws, stating, “We’re closing this chapter once and for all.”
Source: www.cryptoninjas.net
