XRP News Today: Ripple Ends Legal Battle With SEC Accepting $125 Million Penalty

Ripple Labs has decided to drop its cross-appeal in the long-running legal battle with the U.S. Securities and Exchange Commission (SEC). This decision, announced by Ripple Labs CEO Brad Garlinghouse, comes just days after a New York judge rejected the company’s second attempt to settle the case for $50 million. The judge, Analisa Torres, questioned the elimination of the injunction against Ripple, which was a key point of contention in the proposed settlement.

Garlinghouse confirmed the decision on X, stating, “Ripple is dropping our cross appeal, and the SEC is expected to drop their appeal, 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. Lock in.” This move effectively ends the nearly five-year legal dispute, with Ripple accepting the original civil penalty of $125 million and the permanent injunction likely remaining in place.

The legal battle between Ripple and the SEC began in 2020 when the SEC, under then-Chair Jay Clayton, sued Ripple for allegedly violating federal securities laws through its sales of XRP. After years of litigation, Judge Torres ruled in 2023 that while the sales of XRP to retail traders on public exchanges did not constitute securities transactions, the sales to institutional investors did, thereby violating securities laws. This ruling set the stage for the ongoing legal dispute and the subsequent settlement attempts.

The rejection of the proposed settlement by Judge Torres was the second such instance. In May, Torres had previously rejected an earlier settlement attempt due to jurisdictional and procedural flaws. With the court showing no signs of changing its stance on the terms of the settlement, Ripple’s decision to withdraw its cross-appeal marks the end of the legal battle. The company will now focus on its core mission of building the Internet of Value, as stated by Garlinghouse.

This resolution brings to a close a significant chapter in the regulatory landscape of cryptocurrencies. The outcome underscores the importance of compliance with securities laws and the potential consequences for companies operating in the digital asset space. Ripple’s acceptance of the civil penalty and the injunction signals a willingness to adhere to regulatory standards, even as it continues to innovate and expand its operations.