The long-standing legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has officially come to a close, marking a significant moment for both Ripple and the broader crypto industry. The nearly five-year battle ended with a joint filing on August 7 in the U.S. Court of Appeals for the Second Circuit to dismiss all remaining appeals. Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the conclusion in an August 8 post on X, stating that the case was finally over and that the company could now get “back to business.”
Under the terms of the dismissal, the SEC withdrew its appeal of the July 2023 ruling that found XRP sales on public exchanges did not constitute securities transactions. At the same time, Ripple dropped its own cross-appeal over the court’s finding that institutional XRP sales violated securities laws. Each party will bear its own legal costs as part of the agreement.
The settlement paves the way for the disbursement of $125 million previously held in escrow, with $50 million going to the U.S. Treasury as a penalty and $75 million returned to Ripple. However, a permanent injunction remains in place, preventing Ripple from conducting institutional sales of XRP in the future.
From legal accusations to market recovery
The SEC’s lawsuit, originally filed in December 2020, accused Ripple of raising $1.3 billion through unregistered XRP sales. Ripple argued that XRP should not be classified as a security. In July 2023, Judge Analisa Torres delivered a partial victory to Ripple, ruling that programmatic sales to retail investors did not violate securities laws, although institutional sales did.
This final resolution allows Ripple to move forward without admitting any wrongdoing. It also reinforces the precedent that XRP’s retail sales are not considered securities, a position that may influence similar enforcement cases involving other crypto firms.
XRP responded positively to the news, climbing 12.59% in price. Its 24-hour trading volume surged to $9.54 billion, up nearly 140% from the previous day, reflecting renewed investor confidence.
Source:TradingView
XRP price jumps 12% after SEC-Ripple case ends. Volume surged to $9.54 billion, marking a 140% increase.