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Ripple has announced it will drop its cross appeal in the prolonged legal dispute with the U.S. Securities and Exchange Commission (SEC) concerning XRP sales, signaling a pivotal moment in the fintech’s regulatory journey.
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This development follows a recent court decision denying Ripple’s request to reduce a $125 million penalty and lift restrictions on XRP sales, underscoring the complexities of crypto regulation in the U.S.
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According to Ripple CEO Brad Garlinghouse, “We’re closing this chapter once and for all, and focusing on what’s most important—building the internet of value.”
Ripple drops appeal in SEC XRP case, ending a major legal battle and shifting focus to innovation in blockchain and digital assets regulation.
Ripple Ends Legal Battle with SEC, Impacting XRP and Crypto Regulation
In a significant development for the cryptocurrency industry, Ripple Labs has decided to drop its cross appeal in the ongoing SEC lawsuit related to XRP sales. This decision comes after U.S. District Judge Analisa Torres rejected Ripple’s and the SEC’s joint proposal to reduce a $125 million penalty and remove the injunction imposed on Ripple last year. The lawsuit, which has spanned several years, has been closely watched as a benchmark for how digital assets are classified and regulated in the United States.
The SEC initially sought penalties exceeding $2 billion under former Chair Gary Gensler, but recent negotiations aimed to lower this figure substantially. Ripple’s move to end the appeal signals a strategic shift from litigation to innovation, as the company emphasizes its commitment to developing the “internet of value” through blockchain technology.
Legal and Regulatory Implications for XRP and the Broader Crypto Market
The conclusion of Ripple’s appeal marks a critical juncture for XRP holders and the broader crypto ecosystem. The case has highlighted the regulatory uncertainties surrounding digital assets, particularly regarding whether cryptocurrencies should be classified as securities. Ripple’s CEO Brad Garlinghouse has framed the decision as a step toward regulatory clarity, allowing the company to focus on expanding its blockchain solutions without the overhang of legal disputes.
Industry experts suggest that the resolution may encourage other crypto firms to engage more proactively with regulators, fostering a more collaborative environment. However, the SEC’s firm stance on enforcement actions signals that regulatory scrutiny will remain rigorous, emphasizing the need for clear compliance frameworks.