- XRP price increased over 3% following Ripple Labs’ announcement to drop their cross-appeal against the SEC.
- Ripple Labs CEO Brad Garlinghouse said the SEC is also expected to withdraw its appeal.
- The court recently denied a joint request to reduce a $125 million civil penalty and reverse a previous order on XRP sales.
- Ripple’s lawyers state that XRP’s legal status as not a security remains unchanged despite the developments.
- The legal conflict between Ripple Labs and the SEC, ongoing since December 2020, could soon reach a resolution.
XRP surged by over 3% on Friday, hours after Ripple Labs CEO Brad Garlinghouse announced the company is dropping its cross-appeal in its case with the United States Securities and Exchange Commission (SEC). Garlinghouse posted on X that the SEC is also expected to drop its own appeal soon.
According to data from CoinMarketCap, XRP’s price climbed 3.36% to $2.18 approximately five hours after the announcement. Garlinghouse stated, “We’re closing this chapter once and for all and focusing on what’s most important – building the internet of Value. Lock in.”
The update followed a court decision, where the district court denied a joint request from Ripple and the SEC to reduce a $125 million civil penalty and to reverse an order that classified Ripple’s previous institutional sales of XRP as securities transactions. Judge Analisa Torres cited Ripple’s actions as pushing the boundaries of a previous order, creating the possibility of further violations.
Ripple’s chief legal officer, Stuart Alderoty, responded by clarifying the company’s position. “The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales — or press forward with the appeal,” Alderoty said in a statement on X. He emphasized, “Either way, XRP’s legal status as not a security remains unchanged. In the meantime, it’s business as usual.”
If the SEC also withdraws its appeal, it may bring a close to a legal battle that began in December 2020, when the SEC accused Ripple Labs and its executives of raising $1.3 billion by selling XRP as an unregistered security, in violation of federal securities laws. Earlier in 2024, Garlinghouse described the reduction of Ripple’s penalty from the SEC’s original $2 billion claim to $125 million as a “victory” for the company.
Over the past month, XRP’s price has declined by 4.44%, according to CoinMarketCap.
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