The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues to capture public attention, creating precedents in the crypto industry.

Ripple Labs vs. SEC Legal Battle: Implications On Other Firms

Nearly four years after the start of legal proceedings, Ripple Labs is preparing for the Second Circuit Court of Appeals. This decision could set a new standard in the Southern District of New York for handling securities laws for token issuers. Judge Analisa Torres' ruling that 'XRP is not necessarily a security' was a crucial moment for the company. However, in a separate case against Terraform Labs, Judge Jed Rakoff disagreed with Torres. This creates uncertainty in the industry that the SEC seeks to challenge.

Judge Torres’s Latest Order on Ripple Labs

In August, Judge Torres ordered Ripple Labs to pay a $125 million fine for violations related to XRP transactions. The SEC accused the company of raising $1.3 billion through unregistered securities sales. Ripple's chief legal officer, Stuart Alderoty, believes SEC Chair Gary Gensler is creating a 'cloud of uncertainty' over the crypto industry by appealing. He also noted that the decision could support either Judge Torres or Judge Rakoff, with any outcome possible.

Ripple Launches RLUSD Stablecoin Amid SEC Case

Ripple has introduced the RLUSD stablecoin, geared towards companies and financial institutions. It assists in cross-border transactions and asset tokenization. Ripple collaborated with major market players like Uphold, Bitstamp, and MoonPay. RLUSD will be issued under a New York Trust Company Charter and will be available on the XRP Ledger and Ethereum.

Ripple Labs' fight with the SEC remains a focal point in the industry. It is anticipated that the case will conclude in the Second Circuit Court no later than early 2026.