The long-standing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is approaching its resolution. Key events are set to unfold on July 3.
Overview of Ripple vs. SEC Case
The case began in December 2020 when the SEC sued Ripple Labs, alleging the company raised over $1.3 billion through an unregistered securities offering by selling XRP. In July 2023, U.S. District Judge Analisa Torres issued a landmark ruling finding that XRP is not a security when sold on exchanges, but is considered a security when sold directly to institutional investors.
Ripple Withdraws Appeal and the Future of the Case
On June 27, Ripple CEO Brad Garlinghouse confirmed that the company would drop its cross-appeal. It is also expected that the SEC would withdraw its appeal. This followed Judge Torres' rejection of a joint motion filed by both parties to vacate a permanent injunction and reduce Ripple's $125 million penalty. Now, the focus is on the SEC's response, which has until July 3 to take further steps.
Impact of SEC's Decision on the Crypto Market
If the SEC decides to abandon its appeal, it would reinforce Judge Torres' ruling that XRP is not a security for public exchange sales. This would have significant implications for Ripple, its partners, and the entire cryptocurrency industry. The opportunity for no further litigation would help clear the uncertainty surrounding XRP that has persisted for nearly four years.
As July 3 approaches, a decisive moment for Ripple and XRP, the future of cryptocurrency regulation in the U.S. hangs in the balance. This case may set a precedent affecting the classification of other digital assets.
