XRP News Today: SEC May Drop XRP Appeal Ending Legal Battle by August 15

The U.S. Securities and Exchange Commission (SEC) is reportedly considering withdrawing its appeal in the long-running lawsuit against Ripple Labs, a development that could bring an end to the legal battle over the status of XRP under U.S. securities law. If the SEC proceeds with this move, it would likely conclude the case before August 15, as reported by U.Today [1]. This potential withdrawal follows a key court ruling that distinguished between programmatic sales of XRP and institutional sales, partially favoring Ripple’s legal position [1].

The legal conflict, initiated by the SEC in 2020, alleges that XRP was offered and sold as an unregistered security. A prior court decision found that programmatic sales of XRP—those conducted on exchanges—did not constitute securities transactions [1]. The SEC’s appeal focused on challenging this distinction, particularly with respect to institutional sales. Now, if the agency chooses not to continue the appeal, it would effectively close the case and affirm the ruling’s legal significance.

For Ripple and XRP holders, the outcome carries significant implications. A withdrawal would lift a major legal and regulatory overhang, potentially boosting investor confidence and supporting positive price movement in XRP [1]. It would also enable Ripple to more freely expand its business in the U.S., including its On-Demand Liquidity service, which leverages XRP for cross-border payments [1]. Additionally, the decision could serve as a precedent for how other digital assets are evaluated under U.S. securities law, providing much-needed clarity for the broader cryptocurrency industry [1].

The resolution of this case is being closely watched for its potential impact on the regulatory environment for digital assets. The court’s distinction between types of XRP sales may influence how regulators classify other tokens and could encourage greater institutional engagement with cryptocurrencies. It might also prompt legislative efforts to establish clearer and more comprehensive federal regulations for the crypto sector [1].

The SEC’s potential decision reflects the ongoing evolution of crypto regulation in the U.S. and highlights the importance of legal precedents in shaping the future of digital assets. If the agency withdraws its appeal, it would mark a significant turning point, offering a new era of clarity and stability for Ripple, XRP, and the wider crypto market.

Source:

[1] Ripple Appeal: SEC’s Crucial Review Could Finally End the XRP Lawsuit Saga, (https://coinmarketcap.com/community/articles/6894d0f9277009333412b62f/)