Ripple SEC Lawsuit: Significant Step as Appeals Halt

Major news just dropped regarding the long-running Ripple SEC lawsuit. Ripple CEO Brad Garlinghouse has announced a significant development that could signal the beginning of the end for the legal battle.

The Latest on the Ripple SEC Lawsuit

In a recent post on X (formerly Twitter), Ripple CEO Brad Garlinghouse confirmed that the company is formally ending its cross-appeal in the legal dispute with the U.S. Securities and Exchange Commission (SEC). This move comes as the SEC itself is also expected to withdraw its own appeal, a possibility the agency had indicated previously.

This development is crucial because it suggests both parties are moving towards concluding the case following the court’s ruling on remedies. The original lawsuit, filed in December 2020, alleged that Ripple conducted an unregistered securities offering by selling XRP.

What Ending the Ripple Appeal Means

So, what does it signify that Ripple is dropping its Ripple appeal? Essentially, by ending their cross-appeal, Ripple is accepting the court’s previous rulings in their entirety, specifically the summary judgment from July 2023. That ruling determined that programmatic sales of XRP were not securities, while institutional sales were.

The SEC’s expected withdrawal of its appeal means they too are likely focusing on resolving the case based on that same ruling. Appeals typically happen *after* a final judgment on all matters, including remedies (penalties, injunctions, etc.). By dropping appeals now, both sides appear to be signaling their intent to finalize the case based on the upcoming remedies decision, rather than prolonging the process with higher court reviews of the summary judgment.

Think of it this way:

  • **Before:** Both sides reserved the right to challenge parts of the July 2023 ruling they didn’t like (Ripple on institutional sales, SEC on programmatic sales).
  • **Now:** Both sides are seemingly agreeing not to challenge that specific ruling anymore, focusing instead on the final penalties and injunctions the court will impose.

The Context: Previous Rulings and the Rejected Settlement

To fully appreciate this development, it helps to remember the recent history of the XRP lawsuit. The July 2023 summary judgment was a landmark decision for the crypto industry. Judge Analisa Torres ruled that XRP itself is not inherently a security, and its classification depends on the nature of the sale.

Following this ruling, the case entered the remedies phase, where the SEC sought penalties and an injunction against Ripple’s institutional sales. The SEC initially pushed for a much higher penalty, but later proposed lowering the financial penalty to around $50 million and requested the removal of the injunction on Ripple’s institutional XRP sales as part of a potential settlement discussion.

However, the court ultimately rejected a joint effort by both parties to conclude the case prematurely based on these discussions, stating that the remedies phase needed to proceed formally. This latest move to drop appeals seems to be a strategic step following that rejection, clearing the path for a final judgment on remedies without the overhang of appeals challenging the core liability findings.

Insights from Brad Garlinghouse

Confirming the news, Brad Garlinghouse emphasized that this step aligns with Ripple’s focus on the future. His statement on X underscored that the SEC is also expected to withdraw its appeal, reinforcing the idea that both parties are ready to move past the summary judgment disputes.

Garlinghouse’s comments often provide valuable insight into Ripple’s legal strategy and outlook. This announcement, coming directly from the CEO, carries significant weight and is being closely watched by the XRP community and the broader crypto market.

Implications for the XRP Lawsuit and the Market

The decision by both Ripple and potentially the SEC to drop their appeals in the XRP lawsuit is largely being interpreted as a positive sign. It suggests that a final resolution to the nearly four-year legal battle is drawing nearer.

While the final penalty amount and the exact terms of any injunctions on future sales are still to be determined by the court in the remedies phase, removing the uncertainty of an appeal challenging the core ‘not a security’ ruling for programmatic sales is a major step. This could potentially reduce the legal cloud that has hung over XRP and Ripple, allowing the company to focus entirely on its business operations and growth.

Market reaction to this news is often swift, as investors react to reduced uncertainty. The focus now shifts entirely to the court’s upcoming decision on the remedies sought by the SEC.

Conclusion: A Path Towards Resolution

The announcement that Ripple is ending its cross-appeal, coupled with the expectation of the SEC withdrawing its own appeal, marks a pivotal moment in the long-running Ripple SEC lawsuit. By seemingly agreeing not to challenge the core findings of the July 2023 summary judgment, both parties are signaling their readiness to accept the court’s final decision on remedies and move forward. While the case isn’t entirely over until the remedies phase concludes, this development significantly clears the legal landscape and brings a definitive end much closer for the XRP lawsuit.

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