Ripple has withdrawn its appeal in the court battle with the SEC, indicating an approaching conclusion. The potential to resume institutional XRP sales is discussed.
Ripple Withdraws Its Appeal
Since the resolution of the SEC's case against Coinbase, there has been speculation that the legal battle between the SEC and Ripple might soon be concluded. Ripple CEO Brad Garlinghouse confirmed that the company is withdrawing its cross-appeal, marking the final stage of the process. The injunction secured by the SEC against Ripple significantly impacted the company by preventing direct sales of XRP tokens to institutional players.
The Background of Ripple and SEC Dispute
The legal battle between Ripple and the SEC began in 2020, when the US regulator accused the company of selling XRP without proper authorization. Judge Analisa Torres of the US District Court for the Southern District of New York ruled that Ripple's institutional sales constituted an unregistered securities offering, although programmable sales did not fall into this category.
Impact on XRP's Market Status
The SEC has not yet made an official statement on whether it will request the court to withdraw the injunction against Ripple. Fred Rispoli asserts that if the injunction is lifted, Ripple can resume its institutional sales. Nevertheless, Ripple must revamp its institutional sales strategy even if the injunction is lifted. Ripple's institutional XRP sales must still comply with securities law, but it can now sell directly to entities like hedge funds or private equity firms. The XRP community is divided on the withdrawal of the appeal, with some welcoming the decision while others express concern over XRP's future.
Ripple's withdrawal of its appeal marks a pivotal moment in its legal battle with the SEC. The lifting of the injunction could allow the company to resume institutional sales, yet compliance with securities laws remains essential. The XRP community is split, with some optimistic about growth and others wary of regulatory uncertainty. Ripple's future strategy and SEC's decisions will shape XRP's long-term direction.
