XRP News Today: Ripple Drops Appeal Ending 3-Year XRP Lawsuit

Ripple Labs has decided to withdraw its cross appeal against the U.S. Securities and Exchange Commission (SEC) in the ongoing XRP lawsuit, effectively bringing an end to the legal dispute that has spanned nearly three years. The announcement was made by Ripple CEO Brad Garlinghouse, who confirmed the company's intention to drop its appeal and focus on its core business operations.

This development follows a significant court ruling on June 26, when U.S. District Judge Analisa Torres denied the SEC's motion to reduce sanctions and lift an injunction requiring Ripple's compliance with securities laws. The SEC had requested that the court remove the permanent injunction and significantly reduce the financial penalties imposed on Ripple. Judge Torres' denial of this request marked a pivotal moment in the legal battle, as it upheld the previous sanctions and injunctions against Ripple.

The lawsuit, initiated by the SEC in December 2020, centered on Ripple's sale of XRP, with regulators accusing the company of offering XRP as an unregistered security. The SEC argued that the lack of registration deprived investors of critical disclosures necessary for making informed investment decisions. In July 2023, Judge Torres issued a partial summary judgment, determining that Ripple's sales of XRP to institutional clients qualified as unregistered securities transactions, while sales to the general public through exchanges did not.

In March 2024, the SEC sought a final judgment, urging the court to permanently block Ripple from future securities law violations and impose a substantial monetary penalty. With Ripple now confirming its withdrawal of the cross appeal and the SEC expected to do the same, the legal dispute appears to be nearing its conclusion. This decision by Ripple to drop its appeal suggests a strategic move to avoid further legal entanglements and focus on building the Internet of Value, as stated by Garlinghouse.

The end of the XRP lawsuit raises important questions about the future of XRP and its role in the cryptocurrency market. XRP has been widely used for cross-border payments and remittances, and its legal status has been a source of uncertainty for many in the industry. With the lawsuit now resolved, Ripple will need to navigate the regulatory landscape carefully and continue to innovate in the cryptocurrency space. The outcome of this legal battle has significant implications for the broader cryptocurrency industry, as it could set a precedent for how other cryptocurrencies are regulated.