XRP News Today: Ripple vs SEC Lawsuit Nears End as Judge Prepares for Final Ruling

Judge Analisa Torres has received a letter that suggests the commencement of the docket cleanup process, indicating that the long-running legal battle between Ripple and the Securities and Exchange Commission (SEC) over the classification of XRP may be nearing its conclusion. This development comes after a series of legal maneuvers and rulings that have kept the cryptocurrency community on edge.

The SEC's lawsuit, filed in December 2020, alleges that XRP was sold as an unregistered security. The case has been marked by significant legal twists, including a partial ruling by Judge Torres in July 2023 that XRP is not a security when sold on public exchanges. This ruling was a pivotal moment, providing temporary relief for XRP and legitimizing its status as a utility token. However, the SEC's ongoing appeal and demand for nearly $2 billion in penalties have kept the legal battle alive.

The receipt of the letter by Judge Torres signals that the end of the lawsuit may be in sight. The docket cleanup process typically involves finalizing all outstanding motions and preparing for a final judgment. This step is crucial as it sets the stage for the court to issue a definitive ruling on the matter. The letter's contents, while not publicly disclosed, are seen as a positive sign by many in the cryptocurrency community, who hope that a resolution will bring clarity to the regulatory status of XRP.

In the latest court filing, Andrew Kunsak of law firm Sidley Austin LLP requested that Judge Torres remove their client from the court’s docket. Kunsak claimed the investment banker declarant’s role as a key witness in the case has been completed. “The confidentiality of their testimony is not an issue being appealed,” he added. The investment banker declarant entered the XRP lawsuit in August 2023 to provide expert testimony and analysis. It also aimed to safeguard their stakeholders from disclosures in the lawsuit. Kunsak revealed his plans to leave Sidley Austin LLP, with no lawyers to appear in this matter for the investment banker declarant’s work. Notably, Sidley Austin LLP does not represent any party to the appeal.

Recently, Judge Torres denied the parties’ motion for an indicative ruling to end the Ripple vs SEC lawsuit after the SEC filed for a settlement. The parties asked the judge to lift the injunction and reduce the civil penalty to $50 million. Ripple CEO Brad Garlinghouse confirmed to drop their cross appeal in the 2nd Circuit Court as the SEC dropped their appeal. “We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value,” he added.

The legal battle has had significant implications for Ripple and the broader cryptocurrency market. Ripple's CEO, Brad Garlinghouse, has been focusing on expanding the company's market footprint and building its technology as the case nears its end. The outcome of the lawsuit could have far-reaching effects on the regulatory landscape for cryptocurrencies, potentially setting a precedent for how other digital assets are classified and regulated.

The SEC's demand for nearly $2 billion in penalties highlights the high stakes involved in the case. The agency's insistence on pursuing the matter despite the partial ruling in favor of Ripple underscores its commitment to enforcing securities laws in the cryptocurrency space. The legal battle has also raised questions about the role of private settlements in resolving such disputes, with Judge Torres denying a motion seeking an indicative ruling on the matter.

As the case nears its end, the cryptocurrency community awaits the final judgment with anticipation. The outcome will not only determine the fate of XRP but also shape the regulatory framework for digital assets in the United States. The letter received by Judge Torres is a significant development that brings the long-running legal battle one step closer to resolution.