One of the long legal battles that echoed in the ears of all in crypto is the Ripple vs. SEC case. In 2020, Ripple, the crypto firm behind XRP, and the US Securities and Exchange Commission (SEC) made waves in the industry after the commission sued the firm, claiming that it illegally sold XRP as an unregistered security. Both teams went on a roller coaster, boldly pressing for their needs and sticking firmly to their guns. And now, Ripple has announced its cross-appeal with the commission!
Ripple cancels cross-appeal with the SEC
“We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value.” Ripple CEO Brad Garlinghouse’s bold statement marks a potential bullish growth for the crypto firm’s ecosystem. And, importantly, the SEC is also expected to drop the appeal.
So, what is a cross-appeal?
A court decides its rule in a case, and both parties disagree with the decision. In this context, both team decides to appeal different parts of this decision, and this is called a cross-appeal. So, what’s happening in the Ripple vs. SEC case?
Ripple initially appealed for a part of the ruling it did not agree with. Now, it has chosen to withdraw the appeal and stop fighting for that part.
And, why did Ripple file for a cross-appeal?
In 2023, a Judge of the US District Court, Analisa Torres, came up with a statement that on public exchanges, XRP sales were legal, but Ripple broke Section 5 of the Securities Act by selling $728 million of total token sales to institutional investors. Triggered by this, Ripple filed for a cross-appeal.
Ripple and the SEC also put forward a joint filing requesting a US district court to reduce the $125 million civil penalty and reverse the previous ruling to remove the claim that Ripple sold securities. However, on June 26, Analisa Torres rejected the joint motion. Following this denial came the news that Ripple has planned to withdraw the cross-appeal.
Is the Ripple vs SEC case nearing its end in a more crypto-friendly US?
The latest plan of Ripple executives to cancel the cross-appeal insinuates that its battle with the SEC is coming to a resolution. According to reports, the legal battle between both parties have been actively working closely to put an end to the case. Why? The US has become a more crypto-supportive country with crypto-friendly regulators. Trump’s administration also chose Paul Atkins as the new SEC Chair in April, who is also a pro-Republican.
Did XRP react to Ripple’s cross-appeal drop?
As Ripple is dropping the cross-appeal, XRP surged by 3% hours after Garlinghouse made remarks. At the time of reporting, the crypto was hovering at $2.17, showing a slight dip. However, it was 8.64% higher over the past seven days.
As a long-running and high-profile case, the crypto industry is now closely watching for the Ripple vs. SEC battle to come to a screeching halt.
