XRP News Today: Ripple Drops Appeal Ending SEC Legal Battle XRP Clarity Awaits

Ripple, a prominent player in the cryptocurrency space, has made a significant move to conclude its lengthy legal battle with the Securities and Exchange Commission (SEC). The company's CEO, Brad Garlinghouse, announced that Ripple is dropping its cross appeal, with the expectation that the SEC will also withdraw its appeal. This decision comes after months of uncertainty surrounding the outcome of the lawsuit, which has been a major point of contention in the crypto community.

Stuart Alderoty, Ripple’s Chief Legal Officer, had previously shared that the court presented Ripple with two options: either dismiss their appeal regarding past institutional sales or continue the legal fight. Ripple has chosen to move forward, effectively closing this chapter and allowing the company to focus on building the Internet of Value. This strategic decision aims to provide clarity and stability for Ripple and its stakeholders, particularly in the context of XRP's legal status.

Crypto lawyer James K. Filan confirmed that Judge Analisa Torres denied Ripple and the SEC’s joint request for an indicative ruling. This ruling would have paved the way to dissolve the existing injunction and reduce Ripple’s penalty. The court documents reveal that the SEC initially sought nearly $1 billion in penalties from Ripple for selling XRP without proper registration. However, after extensive negotiations, the final penalty was significantly reduced to approximately $125 million. Ripple’s legal team attempted to dissolve the injunction and further reduce the penalty by 60%, but the judge declined this request.

With both Ripple and the SEC planning to drop their appeals, the Summary Judgment stands. This judgment clarifies that XRP is not considered a security when sold on exchanges to retail investors but is classified as a security when sold directly to institutions without proper registration. This legal clarity could remove one of the biggest uncertainties hanging over Ripple, potentially paving the way for a more stable and predictable future for the company and its cryptocurrency, XRP.

The resolution of this legal battle has significant implications for the crypto market. XRP, which has been stuck in a descending channel since early May, is now testing the upper boundary of this channel. The latest candle closed just at the resistance level, indicating a potential breakout. If XRP can achieve a strong daily close above the channel resistance, which is currently near $2.20, it could trigger a significant price movement, potentially reaching $2.60. However, historical data shows that XRP often spikes on major news only to fall back in line with broader market trends. If Bitcoin turns bearish or the overall crypto market weakens, XRP could retest lower support levels around $2.00.

Despite the potential for a breakout, analysts like James K. Filan believe that this legal update could be a turning point for XRP. The clear legal status of XRP in the U.S. market, where it is not considered a security when sold to retail traders, could attract new buyers and investors. However, XRP's price has historically followed Bitcoin and overall altcoin sentiment. While the current situation looks bullish for XRP, the key question remains whether it can break its pattern and start an independent rally. For now, the price action suggests that XRP is at a critical decision point. If the bulls can push XRP above the channel resistance with strong volume, a move towards $2.60 is possible. Conversely, if the breakout fails, XRP will likely remain trapped in its downtrend until broader market conditions improve.