XRP News Today: XRP Lawsuit Unresolved Despite Ripple's Withdrawal of Cross-Appeal

Crypto lawyers have expressed concern over the misunderstanding surrounding the recent settlement in the XRP lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). Despite Ripple's withdrawal of its cross-appeal, legal experts caution that the case remains unresolved until the SEC formally drops its appeal. This has led to a mix of reactions within the XRP community, with some prematurely celebrating the end of the legal battle while others remain cautious.

The confusion arises from Ripple's recent decision to withdraw its cross-appeal, which many interpreted as the conclusion of the lawsuit. However, former SEC lawyer Marc Fagel clarified that the case will not be fully resolved until the SEC formally votes to drop its own appeal. Fagel, who once served as a regional director at the SEC, emphasized that the SEC still needs to take this crucial step for the case to be officially closed. This clarification has cast doubt on earlier claims that the lawsuit was completely over, highlighting the ongoing uncertainty surrounding the case's final resolution.

A key point of contention is whether the SEC's previous vote to approve a settlement with Ripple also included authorization to abandon the appeal. XRP lawyer Bill Morgan questioned this, suggesting that a new vote might be required since the original settlement agreement was conditional and those conditions were never fulfilled. Fagel responded by noting that authorizing a settlement is not the same as voting to withdraw an appeal, adding that this situation is somewhat unusual for a regulatory agency like the SEC. Morgan, who previously tweeted that the case was "finally, finally, OVER," has since walked back that assertion, acknowledging the lingering uncertainty.

The partial resolution between Ripple and the SEC has sparked debate among legal experts and the crypto community. Some critics argue that Ripple's agreement to settle reflects an admission of wrongdoing. However, Morgan disagrees, stating that settlement is not an admission of fault. He emphasized that Ripple has never admitted that its institutional sales of XRP were securities. Instead, the real legal win for Ripple came from Judge Analisa Torres' earlier ruling that XRP itself is not a security, regardless of how it’s sold. This distinction is significant as it suggests that XRP should be viewed more like a commodity than a security under current legal interpretation.

The legal uncertainty surrounding the XRP lawsuit has broader implications for the crypto market. If XRP is not classified as a security, its sale on exchanges and use by everyday consumers would not fall under SEC regulation. This could pave the way for broader adoption and less legal risk for cryptocurrencies like XRP. However, until the SEC officially votes to drop the case, Ripple and XRP remain in legal limbo. As Fagel put it, "Nothing about this is normal." For now, the crypto community will have to wait a little longer for true finality in the XRP lawsuit.