XRP News Today: Ripple-SEC Legal Battle Ends; XRP Surges 13% on Resolution

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have officially concluded their nearly five-year legal battle after both sides agreed to drop their appeals in the case. A joint filing on August 7 confirmed the resolution before the Second Circuit Court of Appeals, ending one of the most high-profile disputes in the cryptocurrency industry and reshaping the regulatory landscape for digital assets [1]. Ripple’s chief legal officer, Stuart Alderoty, announced on social media that the matter was “over” and that the company could now “get back to business” [1].

The settlement finalizes a $125 million penalty, as initially ordered by Judge Analisa Torres in 2023. Under the agreement, $50 million will go to the U.S. Treasury, and the remaining $75 million—previously held in escrow—will be returned to Ripple [1]. The resolution also confirms that the SEC has withdrawn its appeal of a 2023 ruling that found public XRP sales were not securities. Ripple, meanwhile, dropped its appeal against the ruling that institutional sales of XRP did fall under securities laws. Both parties will cover their own legal costs [1].

A permanent injunction remains in place, preventing Ripple from conducting institutional XRP sales without complying with securities laws. The case initially began in December 2020, when the SEC accused Ripple of conducting an unregistered securities offering by raising $1.3 billion through XRP sales. Ripple maintained that XRP was not a security, a stance partially accepted by Judge Torres in July 2023, who ruled that only programmatic sales to institutional buyers were deemed as securities [1].

The resolution follows a broader shift in the SEC’s approach under new Chair Paul Atkins, who has overseen the dismissal of more than a dozen enforcement actions involving crypto firms in recent months. Ripple CEO Brad Garlinghouse had previously stated that a settlement had been in the works since June, though negotiations to reduce the financial penalties did not succeed [1].

The market has responded positively, with XRP surging 13% following the news. The cryptocurrency’s 24-hour trading volume reached $9.5 billion, a more than 100% increase from the previous day. Over the past week, XRP’s price has risen by approximately 14% [1]. Analysts attribute the sharp rise to renewed investor confidence now that the legal uncertainty surrounding Ripple has been resolved [1].

The outcome is seen as a turning point in the U.S. regulatory approach to cryptocurrencies, with similar softer actions reported in other high-profile cases involving firms like Coinbase and Kraken. For the broader crypto industry, it signals a potential shift in Washington’s stance on digital asset regulation [1].

Source: [1] Ripple-SEC Legal Drama Ends; XRP Skyrockets 13% (https://www.newsbtc.com/altcoin/ripple-sec-legal-drama-ends-xrp-skyrockets-13/)