The prolonged legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has formally concluded as both parties jointly filed to dismiss their respective appeals in the U.S. Court of Appeals for the Second Circuit. This decisive move closes nearly five years of litigation that began in December 2020, involving allegations that Ripple’s XRP token was sold as an unregistered security.
The joint dismissal means the SEC has dropped its main appeal, while Ripple has withdrawn its cross-appeal. Both sides will cover their own legal costs, and the previous district court rulings remain in place, including Ripple’s $125 million civil penalty and restrictions preventing further securities law violations. Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the lawsuit’s end, allowing Ripple to fully focus on its business operations after the lengthy court fight.
Previously, Judge Analisa Torres ruled that XRP tokens sold on public exchanges were not securities, but those sold to institutional investors were, which resulted in the penalties. With the appeals dismissed, Judge Torres’ decision stands as final, offering clarity to the cryptocurrency community and potentially shaping future U.S. regulatory approaches to digital assets.
Following the announcement, XRP’s market value rose as the uncertainty around its regulatory status cleared. This milestone represents a crucial moment for Ripple and the broader crypto sector, concluding a landmark regulatory case with significant implications for compliance and investor confidence.
In summary, the SEC and Ripple’s joint dismissal ends one of the most prominent legal battles in the crypto industry, resolving important questions and enabling both parties to move forward.
