XRP Price Soars: Ripple Drops SEC Cross-Appeal, Signaling Potential End to Legal Battle
The cryptocurrency world is buzzing after a significant development in the long-running legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). This news sent the price of XRP, the digital asset associated with Ripple, notably higher, capturing the attention of investors and enthusiasts alike.
Ripple CEO Brad Garlinghouse Announces Dropping Cross-Appeal
In a move signaling a desire to finally put the extensive legal dispute behind them, Ripple CEO Brad Garlinghouse announced on Friday that the company is dropping its cross-appeal against the SEC. This announcement is a major step towards concluding the SEC lawsuit that began back in December 2020.
Garlinghouse stated, “Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said.” He emphasized the company’s focus shifting back to its core business: “We’re closing this chapter once and for all and focusing on what’s most important – building the internet of Value. Lock in.”
How Did XRP React to the News?
Following Brad Garlinghouse’s announcement, XRP (XRP) experienced a positive price movement. Data showed XRP spiking over 3% within hours of the post, reflecting market optimism surrounding the potential resolution of the SEC lawsuit.
While XRP has seen volatility, being down slightly over the past 30 days, this immediate spike demonstrates the market’s sensitivity to developments in the legal battle. A definitive end to the litigation is widely seen as a positive catalyst for the digital asset.
Context: The Ongoing Legal Battle
The SEC lawsuit against Ripple, Chris Larsen, and Brad Garlinghouse centered on the claim that Ripple had raised $1.3 billion through the sale of XRP as an unregistered security. This legal battle has cast a long shadow over Ripple and the XRP market for over four years.
Just a day before Garlinghouse’s announcement, a U.S. district court denied a joint motion from the SEC and Ripple. This motion sought an indicative ruling related to reducing a $125 million civil penalty and clarifying aspects of a previous summary judgment regarding institutional sales of XRP as securities.
What Does This Mean for the Future of the Legal Battle?
Ripple’s decision to drop its cross-appeal puts the ball back in the SEC’s court. As Garlinghouse mentioned, the SEC has previously indicated its intention to drop its own appeal if Ripple did the same. If the SEC follows through, this could indeed bring the protracted legal battle to a close.
Ripple’s chief legal officer, Stuart Alderoty, commented on the situation after the recent court ruling, stating, “The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales — or press forward with the appeal.” He reiterated that, regardless of the appeal decision, “XRP’s legal status as not a security remains unchanged” based on the earlier summary judgment regarding programmatic sales.
Concluding Thoughts: Moving Forward
The decision by Ripple to drop its cross-appeal is a significant step towards resolving the lengthy legal battle with the SEC. This move, coupled with the expectation that the SEC will also drop its appeal, brings the crypto community closer to seeing a definitive end to a lawsuit that has heavily influenced the XRP market for years. As Brad Garlinghouse indicated, the focus for Ripple is now firmly on building and innovation, aiming to finally close this complex chapter and move forward with regular operations.
