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XRP experienced a notable price surge of over 3% following an announcement from Ripple Labs CEO Brad Garlinghouse. He stated the company is dropping its cross-appeal against the U.S. Securities and Exchange Commission (SEC), anticipating a similar move from the regulator, potentially signaling an end to their protracted legal dispute.
Ripple's Strategic Move
Ripple Labs CEO Brad Garlinghouse announced the company's decision to drop its cross-appeal against the SEC, expressing an expectation that the SEC will reciprocate. This move, shared via an X post, aims to conclude the long-standing legal battle and allow Ripple to focus on its core operations.
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XRP's price jumped 3.36% to $2.18 within hours of Garlinghouse's announcement.
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Garlinghouse emphasized closing this chapter to concentrate on "building the internet of Value."
Legal Context and Prior Rulings
This development follows a recent court decision denying a joint motion from the SEC and Ripple. The motion sought to reduce a $125 million civil penalty and reverse an order classifying primary sales of XRP to institutional investors as securities transactions.
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Judge Analisa Torres noted Ripple's tendency to "push the boundaries" of the Summary Judgment Order.
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Ripple's Chief Legal Officer, Stuart Alderoty, affirmed that XRP's legal status as a non-security remains unchanged, regardless of the appeal's outcome.
The Ongoing Legal Saga
The lawsuit, initiated by the SEC in December 2020, accused Ripple Labs, Chris Larsen, and Brad Garlinghouse of raising $1.3 billion through the sale of XRP as an unregistered security. Garlinghouse previously characterized a $125 million fine as a "victory," noting it was a significant reduction from the SEC's initial $2 billion demand.
If the SEC also drops its appeal, it would mark the conclusion of a legal battle that has spanned over four years, bringing much-anticipated clarity to XRP's regulatory standing.
Sources
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XRP Rises 3% After Ripple Drops SEC Cross-Appeal, Cointelegraph.
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