XRP News Today: Ripple Drops Appeal SEC Faces July 3 Decision on XRP

Ripple’s recent decision to withdraw its cross-appeal in the ongoing legal battle with the SEC has shifted all attention to July 3, the deadline for the SEC to decide whether to proceed with its own appeal or conclude the case. This lawsuit has already made history with Judge Analisa Torres issuing a landmark ruling in July 2023. The ruling declared that XRP is not a security when traded on public exchanges but is considered a security when sold directly to institutional buyers. This split decision left both parties dissatisfied, leading to cross-appeals from both Ripple and the SEC. Ripple aimed to overturn the finding on institutional sales, while the SEC sought to reverse the court’s determination that XRP’s secondary market sales are outside securities laws.

The XRP community is eagerly awaiting the outcome, with prominent figures like Captain Redbeard highlighting the significance of July 3. In a recent post, he emphasized that this date could be pivotal for XRP, potentially altering its trajectory. The anticipation is palpable, with many in the community hoping for a resolution that brings clarity to XRP’s regulatory status.

Ripple’s decision to drop its appeal has put the SEC in the spotlight. Ripple CEO Brad Garlinghouse confirmed the withdrawal, expressing his expectation that the SEC will follow suit. This move would leave Judge Torres’ ruling intact, settling XRP’s status in public markets. Legal experts suggest that the SEC’s decision, due by July 3, could shape the future of crypto regulation in the United States. If the SEC proceeds with its appeal, the case could drag on for months or years, keeping XRP’s status uncertain. Conversely, if the SEC abandons its appeal, it could signal a shift in the agency’s enforcement strategy, potentially limiting its ability to pursue similar actions against other tokens sold on exchanges.

Beyond the immediate impact on XRP holders and Ripple’s business, the stakes are high for the broader crypto industry. Crypto law expert John Deaton has noted that the Ripple case, particularly Judge Torres’ distinction between institutional and programmatic sales, is one of the most significant legal interpretations yet issued on digital assets. A decision by the SEC to abandon its appeal might also reflect a broader softening of the agency’s approach after recent court defeats, including its loss to Grayscale Investments, which allowed spot Bitcoin ETFs to launch and unleashed a flood of institutional capital into the crypto market.

For Ripple, a clean resolution would pave the way for expanding its cross-border payment solutions, onboarding new banking partners, and building out its enterprise blockchain ecosystem without the threat of further litigation in the U.S. Analysts believe this could unlock pent-up demand for XRP-based liquidity services, especially as global remittance providers increasingly explore blockchain rails for faster and cheaper transfers. Ultimately, investors, developers, and policymakers are closely watching as the countdown to July 3 begins, hoping for a resolution that brings clarity and stability to the crypto market.