Ripple Labs has resolved its long-standing legal dispute with the U.S. Securities and Exchange Commission (SEC) by opting to drop its appeal. This decision by the firm’s CEO, Brad Garlinghouse, was announced on Friday, marking a significant step forward after a New York judge recently rejected the latest request to settle the case.
Key Points:
- Ripple will not pursue its cross-appeal in the nearly five-year legal saga with the SEC.
- A joint request for a settlement that would reduce Ripple’s civil penalty to $50 million was dismissed by Judge Torres, who expressed concerns about lifting the injunction against Ripple.
- The firm will move forward with accepting the original civil penalty of $125 million, likely retaining the injunction.
Garlinghouse’s statement underscores Ripple’s focus on the future: “Ripple is dropping our cross appeal, and the SEC is expected to drop their appeal, as they’ve previously said. We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value. Lock in.”
In response to the news, XRP saw a modest increase of 1.4%. The situation escalated after U.S. District Judge Analisa Torres once again denied a settlement approach, emphasizing the necessity of compliance with federal law.
With the SEC initially suing Ripple in 2020 under then-Chair Jay Clayton, the legal landscape has evolved, highlighting the regulatory scrutiny within the cryptocurrency domain.
