Ripple Agrees to Drop Cross-Appeal Against SEC, Ending Legal Battle
After Ripple suggested that the SEC should regulate assets strictly within the definition of securities, as revealed in a recent CNFpost, Ripple Labs has agreed to drop its cross-appeal against the U.S. Securities and Exchange Commission (SEC), effectively bringing their prolonged legal battle to a close.
This decision follows the SEC’s move to dismiss its case against Ripple without conditions—marking a pivotal moment for the cryptocurrency industry. In a recent tweet, Stuart Alderoty, Ripple’s Chief Legal Officer, announced that the SEC will retain $50 million of the initially imposed $125 million fine, with the remaining $75 million to be returned to Ripple.
The SEC will keep $50M of the $125M fine (already in an interest-bearing escrow in cash), with the balance returned to Ripple. The agency will also ask the Court to lift the standard injunction that was imposed earlier at the SEC’s request.
Importantly, these funds had been held in an interest-bearing escrow account pending the resolution of the lawsuit. The settlement now awaits final approval from the SEC and the presiding judge, representing a substantial reduction from the original penalty.
Implications for Ripple and the Crypto Market
The resolution of this high-profile legal dispute is expected to have far-reaching consequences for Ripple’s operations and the broader crypto landscape. With the SEC’s case concluded, Ripple anticipates expanding its U.S. operations and resuming on-demand liquidity (ODL) sales without legal hindrances.
Additionally, this development could boost XRP adoption and strengthen investor and partner confidence.
Market Reaction: XRP Price Movement
As noted in another CNF update, XRP futures and open interest data suggest lingering headwinds. However, following the announcement, XRP saw a notable price surge—rising by approximately 13% to nearly $2.56. This reflects a positive market reaction to Ripple’s legal clarity and potential for future growth.
At the time of writing, XRP is trading at $2.44, with an intraday high of $2.47 and a low of $2.41, marking a 0.36% increase in the past 24 hours and 7.03% in the past week, according to Coin Market Cap data. This price stability may indicate sustained investor confidence post-settlement. See XRP price chart below.