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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), effectively bringing a four-year legal battle over XRP token sales to a close. The regulator is likely to follow suit, ending a saga that had significant implications for the digital asset industry.
The move comes after U.S. District Judge Analisa Torres rejected a second joint motion by Ripple and the SEC to modify the original $125 million civil penalty imposed on Ripple. The motion aimed to reduce the fine to $50 million and eliminate the permanent injunction issued by the court.
Judge Torres ruled that Ripple had not presented sufficient evidence of changed circumstances since the original judgment, stating that the company’s actions would continue to pose a “reasonable probability” of violating federal securities laws. This decision left Ripple with two options: pressing forward with an appeal against the court’s ruling on institutional sales or accepting the penalty and moving on.
In a tweet, CEO Brad Garlinghouse confirmed that the company has chosen the latter path. “We’re closing this chapter once and for all,” he stated.
By dropping its cross-appeal, Ripple accepts the original $125 million fine, which is significantly lower than the SEC’s initial demand of $2 billion. The decision also leaves in place a permanent injunction requiring the company to adhere to securities laws in future institutional sales.
It is essential to note that the legal status of XRP has not been altered; it remains non-security for secondary market transactions. This represents a crucial victory for the crypto industry and token holders, as well as Ripple’s determination to operate under the existing injunction while continuing to grow its global network of payments.
Ripple Chief Legal Officer Stuart Alderoty explained the company’s reasoning behind this decision: “The Court provided us with two options: dismiss our appeal challenging the finding on historic institutional sales or proceed. Either path, XRP’s legal status as non-security remains unchanged.”
Garlinghouse echoed these sentiments, signaling a return to core business activities. “Our focus is now on building the Internet of Value,” he emphasized.
The development marks the end of an era for Ripple and its investors, bringing finality to this long-standing case that has shaped the direction of regulatory approaches in the U.S.
Source: www.cryptoninjas.net
