On Thursday, blockchain firm Ripple Labs and the US Securities and Exchange Commission (SEC) filed with the Court of Appeals for the Second Circuit to end their four-year legal battle.
A joint court filing indicated that the two parties had agreed to drop their appeals, with Ripple expected to honor a June agreement to pay $125 million in penalties to the SEC for violating some securities policies. Additionally, Ripple will be restricted from selling its token XRP to institutions.
Ripple vs. XRP Legal Battle
The US SEC brought a lawsuit against Ripple in late 2020, accusing the blockchain giant and some of its top officials of offering unlicensed securities in the form of XRP, the third-biggest digital asset by market cap.
Ripple moved to court to deny the accusations, arguing that its crypto asset didn’t qualify as security. In October 2023, Judge Analisa Torres ruled that the sale of XRP to retail investors via exchanges did not violate any securities laws, but said Ripple violated some SEC rules when selling its token to institutions.
That ruling forced the SEC to drop its charges against Ripple Executive Chairman Chris Larsen and CEO Brad Garlinghouse. However, the agency filed an appeal, arguing that the court’s decision was unsatisfactory. A few weeks later, Ripple cross-appealed, extending the years-long court battle.
Industry Players Expected Thursday’s Outcome
The SEC and Ripple’s decision to end their legal dispute did not come as a surprise to many. That’s because the two entities had expressed their desire to drop appeals weeks ago. Furthermore, US President Donald Trump’s promise to end legal attacks on crypto companies boosted the chances of the SEC dismissing its motion against Ripple.
XRP Reacts
The latest development has been welcomed by XRP investors, as evidenced by the token’s performance over the past 24 hours. According to CoinGecko data, XRP has surged 10.1% to $3.33. Notably, it has grown by nearly 80% since April, when the SEC and Ripple hinted at ending their legal battle. Whether XRP will cross the all-time high of $3.56 in the coming days remains to be seen.
