The ongoing dispute between Ripple Labs and the US Securities and Exchange Commission (SEC) is reaching a critical juncture as Ripple takes decisive action regarding its XRP token sales.
Ripple Seeks Closure in Legal Proceedings
In a recent announcement through social media, CEO Brad Garlinghouse revealed Ripple’s intention to withdraw its cross appeal concerning its XRP tokens. This move indicates a potential end to a lengthy legal battle that has resonated throughout the cryptocurrency industry.
Garlinghouse stated that both Ripple and the SEC are contemplating dropping their appeals, which may lead to a resolution that benefits both parties. He highlighted the company’s desire to pivot back to its primary goal of establishing the “Internet of Value.”
This strategic decision comes on the heels of substantial legal pressures regarding the classification of XRP as a security. The regulatory environment has often been influenced by former SEC Chair Gary Gensler’s controversial methods, criticized by various stakeholders for prioritizing enforcement over clear guidelines.
Previously, the SEC had launched a lawsuit against Ripple, accusing it of violating securities laws during its XRP sales, a stance that sparked widespread debate within the cryptocurrency community.
Significant Developments for XRP
The legal situation took a notable turn in 2023 with a court judgment that declared XRP sales on public exchanges were permissible. However, the ruling also identified that institutional sales amounting to $728 million breached securities regulations.
In response to the court’s ruling, both Ripple and the SEC had initiated appeals. Nevertheless, conversations around a potential settlement emerged when both parties appeared willing to resolve matters — contingent on the alteration of a previous injunction and a substantial reduction of a $125 million fine imposed on Ripple. Unfortunately, the judge rejected this appeal, leading to Ripple’s recent decisions.
By opting to withdraw its cross appeal, Ripple aims to hasten the conclusion of this protracted legal conflict, which has created uncertainty not only for the company but for the entire cryptocurrency market.
At the time of this report, XRP’s price showed signs of recovery, climbing 1.5% to approximately $2.14. This uptick comes after a previous decline of over 4%, triggered by Judge Torres’s decision that sent the cryptocurrency down toward $1.90.
Image credit: DALL-E, chart from TradingView.com
