Ripple Withdraws Appeal in Long-Running SEC Case

Brad Garlinghouse, CEO of Ripple, announced that the company has decided to drop its cross-appeal in the ongoing legal case with the SEC, closing a significant chapter in its legal battles.

Ripple’s decision to end its appeal against the SEC stands to alter legal implications for digital assets, impacting XRP’s market positioning and regulatory status. XRP’s price has already responded positively, reflecting renewed investor confidence.

The decision marks an important resolution in a case initiated by the SEC in December 2020 over allegations of unregistered securities sales. Ripple’s leadership, including Brad Garlinghouse, emphasized closing the legal saga to concentrate on business growth. As Garlinghouse stated, “We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value. Lock in.”

Increased market confidence is evident as XRP experienced a 1.5% price rise following the news. The resolution removes uncertainty, which had weighed on XRP’s market activity, suggesting enhanced trading and liquidity for the asset.

Analysis suggests the outcome might influence future SEC actions on cryptocurrencies. Stuart Alderoty, Chief Legal Officer at Ripple, reiterated XRP’s legal status as not a security remains, offering a reference point for other Layer 1 assets. Past cases show regulatory clarity can stabilize and potentially drive asset values.

Ripple’s legal closure offers financial relief for potential penalties, shifting focus and resources back to product development. Regulatory experts anticipate SEC might reciprocate by dropping its appeal, maintaining procedural consistency.

As of the announcement, XRP maintained approximately $2.4 billion in 24-hour average volume, reflecting a market readiness to move forward. Nate Geraci commented on the market reactions, indicating that clarity often restores market health, paving the way for enhanced adoption.