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Ripple Labs is taking a significant step in its protracted legal struggle with the US Securities and Exchange Commission (SEC) by withdrawing its cross appeal regarding the sale of its XRP tokens.
CEO Brad Garlinghouse announced the decision on Friday on social media platform X (formerly Twitter), stating that both Ripple and the SEC are expected to drop their respective appeals, signaling a potential resolution to a dispute that has lasted several years.
Garlinghouse emphasized that the blockchain payments company is determined to close this chapter and shift its focus towards its core mission: building the “Internet of Value.”
The decision comes after a tumultuous period marked by legal challenges over the classification of XRP as a security. This period was characterized by the leadership of former SEC Chair Gary Gensler, who was criticized for his “regulation by enforcement” approach.
The SEC had previously sued Ripple, alleging violations of securities laws during the sale of XRP tokens, which has been a contentious issue in the cryptocurrency landscape.
The legal saga reached a pivotal moment in 2023 when a judge ruled that while XRP sales on public exchanges were legal, the $728 million in sales to institutional investors were indeed in violation of securities regulations.
Following this ruling, both Ripple and the SEC filed appeals, but discussions of a settlement emerged when both parties agreed to resolve the matter if the judge were to set aside her injunction and reduce the $125 million fine imposed on Ripple. However, that request was denied by the judge, prompting Ripple’s latest decision.
By withdrawing its cross appeal, Ripple aims to expedite the resolution of this lengthy legal battle, which has cast a shadow over the company and the broader cryptocurrency market.
As of press time, the XRP price had recovered slightly, rising 1.5% toward $2.14. This follows a steep drop of over 4% on Thursday, after Judge Torres’s decision caused the fourth-largest cryptocurrency to retrace toward $1.90.
Featured image from DALL-E, chart from TradingView.com
