On Friday, the U.S. Securities and Exchange Commission (SEC) submitted a status report regarding the litigation, announcing a joint stipulation of dismissal between Ripple, its executives, and the SEC.
Overview of the Ripple and SEC Case
The SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the sale of XRP tokens occurred without prior registration as securities. The case has spanned over five years, capturing the attention of both legal advocates and cryptocurrency investors.
Details of the Stipulation of Dismissal
On August 7, the SEC filed a joint stipulation of dismissal with the U.S. Court of Appeals for the Second Circuit, signed by defendants Ripple Labs, Brad Garlinghouse, and Chris Larsen. This stipulation entails the dismissal of the SEC's appeal and Ripple's cross-appeal, effectively closing the civil enforcement action against the defendants.
Responses from Participants and Consequences
In light of the recent agreement, former SEC regional director Marc Fagel commented on the situation, noting that Judge Torres no longer has any involvement in the case. In response to speculation about an awaited court decision, he reminded: "Judge Torres has nothing further to do with this case." Lawyer Bill Morgan characterized the status report as a formality with no impact on prior developments in the lawsuit.
With the conclusion of the Ripple vs. SEC case, representatives from Ripple and the SEC expressed satisfaction with the agreements reached. This conclusion sets a precedent for future litigation in the cryptocurrency sector and provides clarity for investors.
