SEC Drops XRP Appeal, Ripple Wins Major Legal Victory

The US Securities and Exchange Commission (SEC) has made a significant move by deciding to drop its appeal against Ripple in the ongoing legal battle. This decision follows a federal judge's ruling in July 2023 that XRP is "not necessarily a security on its face," which weakened the SEC's case. The judge also imposed a $125 million fine and a permanent injunction against Ripple for violating federal securities law. Ripple CEO Brad Garlinghouse confirmed the SEC's decision, stating that this marks the end of the long-standing lawsuit that the SEC initiated against Ripple four years ago. The SEC had alleged that XRP was a security, but this has now been officially refuted, according to Garlinghouse. This victory for Ripple has major implications for the crypto sector, as it sets a precedent for proper legislation.

Legal expert Fred Rispoli has shared insights on the possible reasons behind the SEC's decision to dismiss the XRP case. Rispoli linked the SEC's move with its recent actions in multiple crypto lawsuits, where the regulator dismissed cases involving Kraken, Coinbase, Robinhood, and others. Rispoli suggested that the SEC's latest move likely signals the regulator's approach to negotiating a settlement. This strategic decision by the SEC could pave the way for Ripple to announce a highly anticipated Initial Public Offering (IPO). The prolonged lawsuit had hindered Ripple's IPO chances, but the agreement could accelerate Ripple's plans for an initial public offering.

Ripple has opted to keep its cross-appeal active despite the SEC's decision to drop its appeal. This has prompted speculation about the potential implications of the XRP case's end. Lawyer Bill Morgan took to X to shed light on the potential implications of the Ripple case dismissal on XRP. According to him, the SEC’s move has provided clarity on the legal status of XRP; it has been classified as a non-security. Notably, Bill Morgan’s words echo the broader sentiment within the XRP community, which is celebrating this crucial development as a significant victory for Ripple and the broader crypto industry.

Ripple's cross-appeal, filed in October 2024, is still ongoing, and the SEC's decision not to continue with its appeal strengthens Ripple's position in renegotiating the $125 million settlement. The injunction issued by Judge Analisa Torres, which prevents Ripple from selling XRP to institutional investors, remains in place. Ripple will need to find a way to bypass this injunction to continue issuing XRP to American banks. The implications of the SEC's decision are far-reaching. For Ripple, this victory paves the way for continued growth and development in the crypto sector. The ruling that XRP is not a security opens up new opportunities for Ripple to expand its operations and partnerships. However, the injunction against selling XRP to institutional investors remains a challenge that Ripple will need to address. The future of XRP and Ripple's role in the crypto sector will depend on how these challenges are navigated. The crypto community is optimistic about the potential for XRP to reach new heights, but the path forward will require careful consideration and strategic planning.