XRP News Today: Ripple Drops Cross-Appeal SEC Expected to Follow Suit

The ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC) over the classification of XRP has sparked considerable confusion and speculation. Recent social media posts have erroneously claimed that the SEC has already dropped its appeal against Ripple. However, the actual situation is more nuanced.

A judgment has already been rendered, and Ripple has chosen to withdraw its cross-appeal. Nevertheless, the SEC's appeal has not yet been officially dismissed. Former SEC lawyer Marc Fagel clarified that both parties must submit formal paperwork to dismiss their appeals. While it is widely expected that this will occur, the SEC is currently navigating its internal approval process.

When questioned about the possibility of the SEC voting to continue its appeal, Fagel explained that the SEC had previously agreed to dismiss it as part of a settlement plan. This plan was contingent on the court vacating an injunction, which did not materialize. Given the current circumstances, there is no compelling reason for the SEC to prolong the appeal, and it is anticipated that they will proceed with dismissing it outright.

Once the SEC completes its internal vote, both the SEC and Ripple will jointly file the necessary documents to officially terminate the appeals. At this point, the district court’s judgment will take full effect, marking the conclusion of this protracted legal battle.

This clarification comes in the wake of Ripple CEO Brad Garlinghouse’s recent announcement, where he stated, “Ripple is dropping our cross-appeal, and the SEC is expected to drop theirs, as they’ve previously said. We’re closing this chapter once and for all and focusing on what’s most important — building the Internet of Value.”

Until the formal paperwork is submitted, the appeals process remains technically open, although all indications suggest that it will be officially concluded in the coming weeks. The SEC's next steps are under close scrutiny, with lawyer Marc Fagel anticipating that the process to dismiss its appeal in the XRP lawsuit could extend over several weeks. This timeline is significant as it coincides with the SEC's scheduled meeting on July 3, which could potentially influence the outcome.

Despite Ripple's recent decision to drop its cross-appeal, the lawsuit is far from concluded. The SEC must still conduct an official vote to dismiss its appeal. This procedural step is crucial as it marks the formal closure of the legal dispute. The dismissal process, while not requiring court permission, involves filing and approving the dismissal, which can be time-consuming.

The SEC and Ripple do not need court approval to dismiss their appeals, but the administrative process of filing and approving the dismissal can take considerable time. Fagel emphasizes that the case will not be officially closed until the SEC follows Ripple's lead and withdraws its appeal. The final settlement will depend on the SEC's internal voting process and the subsequent legal submissions from both parties.

For the lawsuit to be formally closed, the SEC must hold an official vote to dismiss its appeal. Following this vote, both Ripple and the SEC will need to submit the necessary legal documents to finalize the dismissal. This process ensures that all procedural requirements are met before the case can be officially resolved.

Ripple CEO Brad Garlinghouse announced that Ripple is officially dropping its cross-appeal in the long-running case with the SEC. This move is seen as a strategic decision by Ripple, aiming to expedite the resolution of the lawsuit. However, the SEC's internal voting process remains a critical factor in determining the final outcome of the case.

Even if the SEC uses its July 3 meeting to formally vote to drop its appeal, the case does not end instantly. The subsequent process includes formal legal submissions and approvals, which can take additional time. This procedural delay is a key consideration for market participants and legal observers alike. The market sentiment has clearly warmed up, with expectations of a potential resolution on the horizon. However, the actual outcome will depend on the SEC's internal decision-making process and the legal steps that follow.