The resolution between the Securities and Exchange Commission (SEC) and Ripple Labs marks a pivotal moment in the evolving landscape of cryptocurrency regulation. This conclusion comes at a time when clarity in regulations is becoming vital for the future of digital asset markets in the United States.
Ripple Labs and SEC Reach Final Settlement
Recently, a joint announcement from both the SEC and Ripple indicated their mutual decision to withdraw all pending appeals. This decision permanently closes one of the most significant legal battles in cryptocurrency history.
Filed with the US Court of Appeals for the Second Circuit, the agreement confirms the dismissal of the SEC’s appeal (No. 24-2648) and Ripple’s own cross-appeal (No. 24-2705). The resolution specifies that both parties will cover their own legal expenses, bringing an end to an extended period of litigation.
This conflict originated in December 2020 after the SEC accused Ripple and its executives of conducting unregistered sales of XRP, labeling it a security. Ripple’s stance has been clear throughout: it argues that XRP should be classified as a digital currency rather than a security.
A New Chapter for Ripple and Its Supporters
The case consisted of many milestones, chief among them a landmark decision in July 2023 by Judge Analisa Torres of the Southern District of New York.
Judge Torres ruled that sales of XRP on public exchanges did not fall under the definition of securities transactions—offering Ripple a noteworthy legal victory. However, the litigation wasn’t entirely over, as issues pertaining to institutional sales of XRP remain under scrutiny.
Stuart Alderoty, Ripple’s Chief Legal Officer, shared his reflections on this legal conclusion via social media. He emphasized the importance of moving forward following lengthy deliberations, stating, “A new beginning awaits us.”
Image source from DALL-E, data visualization by TradingView.com.
