Ripple CEO Drops Bombshell: Cross Appeal Withdrawn in SEC Showdown – What’s Next for XRP?
Ripple just lobbed a legal grenade in its marathon battle with the SEC. CEO Brad Garlinghouse pulled the plug on the company's cross appeal—a move that's got the crypto world buzzing.
Here's why it matters:
The withdrawal could signal Ripple's confidence in its partial victory last year, when a judge ruled XRP sales to retail investors didn't constitute securities offerings. Or it might be a tactical retreat before an even bigger fight.
Market reaction? XRP holders are holding their breath—the token barely budged on the news. Because nothing moves crypto markets like good old-fashioned regulatory uncertainty (except maybe a meme coin tweet from Elon).
One thing's certain: Wall Street lawyers are already billing overtime on this one. The SEC won't take this lying down—not when there's a chance to set precedent and justify their existence for another fiscal year.
Ripple Moves To Close Legal Chapter
CEO Brad Garlinghouse announced the decision on Friday on social media platform X (formerly Twitter), stating that both Ripple and the SEC are expected to drop their respective appeals, signaling a potential resolution to a dispute that has lasted several years.
Garlinghouse emphasized that the blockchain payments company is determined to close this chapter and shift its focus towards its Core mission: building the “Internet of Value.”
The decision comes after a tumultuous period marked by legal challenges over the classification of XRP as a security. This period was characterized by the leadership of former SEC Chair Gary Gensler, who was criticized for his “regulation by enforcement” approach.
The SEC had previously sued Ripple, alleging violations of securities laws during the sale of XRP tokens, which has been a contentious issue in the cryptocurrency landscape.
Turning Point For XRP
The legal saga reached a pivotal moment in 2023 when a judge ruled that while XRP sales on public exchanges were legal, the $728 million in sales to institutional investors were indeed in violation of securities regulations.
Following this ruling, both Ripple and the SEC filed appeals, but discussions of a settlement emerged when both parties agreed to resolve the matter if the judge were to set aside her injunction and reduce the $125 million fine imposed on Ripple. However, that request was denied by the judge, prompting Ripple’s latest decision.
By withdrawing its cross appeal, Ripple aims to expedite the resolution of this lengthy legal battle, which has cast a shadow over the company and the broader cryptocurrency market.
As of press time, the xrp price had recovered slightly, rising 1.5% toward $2.14. This follows a steep drop of over 4% on Thursday, after Judge Torres’s decision caused the fourth-largest cryptocurrency to retrace toward $1.90.
Featured image from DALL-E, chart from TradingView.com
