Ripple Ends Legal Battle with SEC, XRP Surges 1.422%

XRP's latest price was $2.21, up 1.422% in the last 24 hours. Ripple has formally withdrawn its cross-appeal in its legal case with the U.S. Securities and Exchange Commission. The SEC is expected to do the same, marking the end of a multi-year legal battle. According to Brad Garlinghouse, Ripple is “closing this chapter once and for all.”

Ripple CEO Brad Garlinghouse has publicly reiterated his strong commitment to XRP, generating significant interest across the cryptocurrency community. This affirmation highlights XRP's potential in cross-border payments, impacting trader behavior and market sentiment. Garlinghouse declared his unwavering support for XRP, responding with a "1000%" commitment. This announcement has invigorated the community, driving attention to XRP's strategic role in modern payment solutions.

Garlinghouse addressed the potential of XRP, emphasizing its ability to capture a substantial market share in the coming years. He stated, "XRP could capture 14% of SWIFT volume in just 5 years. Liquidity is owned by the banks. I think less about the messaging and more about liquidity. If you’re driving all the liquidity, it is good for XRP… so I’ll say five years, 14%." His statements prompted reactions that could influence XRP's market value and adoption rate.

The market's immediate reaction included increased trading activity within the XRP space. Community members and influencers actively discussed potential implications on XRP’s utility and value, given Garlinghouse's reassurances. Projected growth for XRP in financial markets could influence broader industry dynamics. The potential underlines Ripple's focus on expanding its influence within the global financial infrastructure.

Garlinghouse's track record of making bold claims suggests volatility could ensue, prompting fluctuations in XRP's market performance. Historical precedence indicates temporary spikes in activity following similar statements. Potential regulatory shifts or partnerships remain speculative. However, the strong confidence from Ripple's leadership could catalyze technological integrations and strengthen XRP’s adoption in financial ecosystems.

Ripple Labs has finally ended its lengthy legal battle with the United States Securities and Exchange Commission (SEC). The case lasted more than four years, bringing uncertainty to Ripple and the broader cryptocurrency industry. Ripple has confirmed it will not continue its appeal. This decision came just after Ripple’s CEO, Brad Garlinghouse, praised the XRP community for correctly predicting this outcome.

A few days before the final decision, a poll asking the XRP community what they thought Ripple would do next. Over 500 XRP holders responded. Interestingly, the majority, approximately 74%, believed the company would settle the case rather than continue fighting it in court. That prediction became reality when Garlinghouse took to social media shortly after the ruling. After the court gave its final decision, the CEO confirmed that Ripple would not appeal. He also thanked the community for their strong support and good judgment.

On June 26, the judge presiding in the case, Analisa Torres, rejected a joint request from both Ripple and the SEC. Both parties had agreed to settle the case with a reduced $50 million penalty and to remove the ban on Ripple’s institutional sales of XRP. However, the court declined, keeping the original $125 million fine and the injunction in place. The judge ruled that there were no exceptional circumstances to justify reversing the previous decision. With this ruling, Ripple was left with two options: either to continue the appeal process or end it and accept the terms. The company chose the latter.

Ripple has stated its intent to focus entirely on business growth and innovation. Garlinghouse reiterated the company’s commitment to building the Internet of Value. This idea aims to make cross-border payments faster, cheaper, and more accessible using XRP and blockchain technology. The crypto community is hoping that the approval of the XRP Exchange Traded Fund (ETF) will be expedited now that the legal battle surrounding the digital coin is over. Many believe leading asset manager BlackRock will be the first to launch the crypto investment firm in the United States.

The ongoing legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission has seen new clarity regarding a recent injunction. Legal professionals have clarified that the court’s decision only restricts Ripple’s XRP institutional sales conducted from its inception through 2018. It does not prevent Ripple from continuing institutional sales under current regulations. Attorney Fred Rispoli emphasized that the court-defined term “institutional sales” strictly refers to XRP sales made before 2018. He stated that Ripple’s current and future business activities, including institutional sales, are not affected by the injunction. According to Rispoli, the ruling does not restrict ongoing operations, provided those activities are aligned with existing laws.

Attorney James Farrell agreed with this stance when he recorded that this prohibition on sales by institutions is not a blanket restriction on institutional sales. On the contrary, it does not allow Ripple to conduct sales of unregistered securities, as it is stated in Section 5 of the Securities Act. Farrell identified that Ripple has the potential to carry on with the institutional transactions provided it falls under the regulatory compliance, which may include registering or getting a no-action letter through the SEC. After the lawsuit, Ripple is said to have changed its approach in sales. The company has also made efforts to enhance its level of transparency and uphold communication with the regulating bodies. Ripple Chief Legal Officer Stuart Alderoty admitted that the firm does not use the same business model of selling its products as it did before 2018 and is currently using the new practices that emphasize compliance.

Former SEC attorney Marc Fagel commented that the agency might drop its appeal. However, no formal decision has been announced. If the SEC does abandon its challenge, it would signal a possible end to the long-standing legal standoff. XRP legal advisor Bill Morgan highlighted that specific conditions may still need SEC approval before a final resolution is confirmed. The clarification around the scope of the injunction has eased some market concerns. Ripple’s revised approach to institutional sales, supported by legal interpretation, suggests that its future operations remain legally viable. The company continues to adjust to regulatory expectations while avoiding past missteps.