Ripple Labs is engaged in a notable legal confrontation with the U.S. Securities and Exchange Commission, and the company has now chosen to withdraw from further appeals.
Ripple's Plans to End Appeal
CEO Brad Garlinghouse confirmed via a post on X that the company is dropping its counter appeal. 'Ripple is dropping our cross appeal, and the SEC is expected to drop their appeal as they’ve previously said. We’re closing this chapter once and for all and focusing on what’s most important – building the Internet of Value.'
Court's Decision and its Consequences
This development follows a court ruling on June 26 when Judge Analisa Torres denied the SEC's request. The commission sought to remove the permanent injunction mandating Ripple's adherence to federal securities law. Judge Torres issued a brief, straightforward order stating: 'The request is DENIED.'
Overview of the Legal Dispute between Ripple and SEC
The legal battle, initiated by the SEC in December 2020, focused on Ripple's sale of XRP. Regulators accused the company of offering XRP as an unregistered security, thereby violating U.S. law. The SEC claimed investors were deprived of vital disclosures. In July 2023, a partial summary judgment determined that sales of XRP to institutional clients qualified as unregistered securities transactions, while sales to the general public through exchanges did not.
With Ripple confirming it will withdraw its cross appeal and the SEC expected to do the same, this could signal the approaching end of the lengthy legal dispute between the two parties.
