Ripple announced the withdrawal of its cross-appeal in its legal dispute with the SEC, marking a potential end to a four-plus-year legal battle that has impacted the entire crypto industry.
After years of legal battles that kept the entire crypto industry in suspense, Ripple has taken a definitive step by announcing the withdrawal of his cross-appeal in its legal dispute with the U.S. Securities and Exchange Commission (SEC). This move could mark the end of a court battle that spanned more than four years, a case that not only affected Ripple as a company but also had a profound and lasting impact on the entire cryptocurrency ecosystem.
The decision, announced by Brad Garlinghouse, CEO of Ripple, opens a new chapter for the company, which now looks optimistically towards its mission of build the so-called “Internet of Value”.
The announcement that could change the history of Ripple and the crypto industry
Brad Garlinghouse has clearly confirmed that the company will withdraw its cross-appeal in the long-running legal dispute with the SEC and expects the regulator to do the same, which would finally put an end to this litigation that has marked the industry for years.
"We're closing this chapter once and for all and focusing on what matters most: building the Internet of Value.", Garlinghouse said.
This declaration It comes after a long process in which both parties sought to resolve a case that began with serious accusations in 2020. At that time, the SEC accused Ripple of carrying out an unregistered securities offering that reached $1.300 billion through the sale of its XRP token.
The case itself became complex and revealing. In 2023, Judge Analisa Torres issued a mixed ruling that was highly relevant in defining the nature of the XRP token within the legal framework. According to her ruling, Programmatic sales of XRP were not considered violations of securities laws.This means that these automated transactions, conducted under a blind bidding system, did not violate the relevant regulations. However, on the other hand, it ruled that direct sales to institutional investors did constitute securities sales. This resulted in Ripple facing an original fine of $125 million.
Over the years, both parties negotiated and reached an agreement where Ripple agreed to pay $50 million of that fine, while the remaining $25 million would be returned to the company. But the final settlement of the case was not so simple, as Judge Torres repeatedly rejected Ripple's proposals to lift the injunction and reduce the penalty, most recently last week. She based her rejection on deficiencies in both the legal arguments and the procedures presented.
A legal victory that boosts the future of the “Internet of Value”
This partial outcome was favorable to Ripple, especially due to the distinction made by Judge Torres to do not consider XRP as a security In certain operations, it is perceived as a momentous victory for the entire cryptocurrency industry.
The recognition of this regulatory difference clears up a host of legal uncertainties that for years have hindered smooth product development and market expansion, including the possibility of launching XRP-related ETFs (exchange-traded funds), a topic that generates great excitement in the financial ecosystem.
Following these rulings, and the importance of clarifying XRP's regulatory status for its future, Ripple decided that the most prudent course of action was to withdraw the cross-appeal while waiting for the SEC to do the same. Stuart Alderoty, General Counsel at Ripple Labs, expressed that this decision puts the ball back in the company's court and that, regardless of how it is resolved, XRP's legal status as not a security remains intact, generating stability and confidence in the market.
For his part, Garlinghouse stressed that this closure will allow Ripple to leave behind years of legal battles to Focus on its vision that transcends the XRP token: building the "Internet of Value".
With this mission, Ripple Labs seeks to revolutionize the way global payments are handled, promoting financial interoperability and efficiency in cross-border transactions.
Beyond a court case, a change for the Blockchain ecosystem
The imminent conclusion of this legal case will not only have direct repercussions for Ripple, but will also set a precedent for regulators and crypto companies in the United States and globally. By providing greater legal clarity, the conclusion of the litigation could encourage more blockchain companies and projects to operate with greater legal certainty, driving innovation and mass adoption of cryptocurrency-based technologies.
Furthermore, a favorable ruling on XRP's classification could help mitigate the regulatory volatility that has historically plagued this market. The more stable and predictable environment will boost fintech startups, not only in the United States but also in other markets seeking a clear and user-friendly regulatory framework for developing solutions based on digital tokens and blockchain.
For Ripple, the focus is now on enhance the practical applications of XRP, partnering with financial institutions and banks worldwide to facilitate faster and cheaper international payments, a fundamental step toward its visionary goal.
BUY XRP HEREA future without legal barriers
In short, Garlinghouse and Alderoty's remarks reflect a decisive shift in the landscape for Ripple and the entire cryptocurrency industry. The protracted battle with the SEC has not only been a legal confrontation, but also a benchmark for defining how digital assets will be regulated in the near future.
Now, with the withdrawal of the appeal, a renewed era of possibilities opens, encouraging innovation and resilience in the "Internet of Value." Ripple is looking ahead, putting the dispute behind it and focusing all its efforts on building a more transparent, efficient, and globally connected financial future.
