- Ripple and SEC’s lawsuit dismissal boosts market optimism.
- XRP price increases following legal conclusion.
- Ripple pays $125 million civil penalty.
The U.S. Court of Appeals for the Second Circuit dismissed the appeals related to XRP, involving Ripple and the SEC, finalizing the legal actions on October 2023.
This decision clarifies XRP’s non-security status in secondary markets, influencing market dynamics positively, with XRP experiencing an 8% price increase immediately after the announcement.
The U.S. Court of Appeals for the Second Circuit has approved the dismissal of the long-standing XRP lawsuit, marking the end of legal proceedings between Ripple Labs and the SEC. This decision concludes a high-profile case.
In the lawsuit, Ripple Leaders include Brad Garlinghouse and Chris Larsen were involved. Both Ripple and the SEC agreed to dismiss their appeals, halting further litigation and restoring broader market confidence.
The dismissal has prompted an 8% rise in XRP’s price, signaling investor relief. XRP‘s legal status has gained clarity, particularly benefiting holders and exchanges involved in its secondary market activities.
The ruling holds financial and regulatory importance. With XRP not considered a security, the decision reassures Ripple-associated institutions and may impact future cryptocurrency market regulations.
Ripple’s payment of a $125 million civil penalty resolves its violations related to institutional sales. While financially noteworthy, this amount is significantly lower than potentially anticipated figures earlier in the litigation process.
This outcome sets a precedent for other digital assets, affirming secondary market sales are not securities, which could guide future regulatory discussions. Institutions may find renewed confidence in engaging with XRP and Ripple’s ecosystem.
James K. Filan, Defense Lawyer, stated, “The Second Circuit has approved the Joint Stipulation of Dismissal.”
