The XRP price jumped more than 3% on Friday just hours after Ripple Labs CEO Brad Garlinghouse whose company was dropping its cross-appeal against the US Securities and Exchange Commission (SEC) and the regulator hoped to do so.
“Ripple is lowering our cross-appeal, and the SEC is expected to lower their appeal, as they said before,” Garlinghouse Says On an X post on Friday. XRP (XRP), Cryptocurrency associated with Ripple Labs, raised 3.36% to $ 2.18 five hours only after the post, According to In CoinMarketCap data.
Garlinghouse declared a return to regular operations
“We are closing this chapter once and for all and focusing on what is most important – building the internet of value. Lock the,” Garlinghouse added.
The announcement will come one day after the The Court of the United States District denied a joint motion From the SEC and Ripple asking for an implicit decision to reduce a $ 125 million civil penalty and reverse an order that refers to the primary XRP sales to institutional investors as security transactions under Article 5 of the Securities Act.
“Eventually, the court granted part of the SEC request for an injunction and a civil penalty because the court found that Ripple’s willingness to push the boundaries of (summary judgment) had ordered a possibility that eventually, if it had not yet, crossed the line,” said Judge Anisa Torres.
XRP’s legal status is “remains unchanged,” Ripple’s lawyer says
After the decision, head of legal ripple officer Stuart Alderoty Says“The ball is back to our court.”
“The court has given us two options: delete our appeal that challenges the search for institutional sales – or press forward with an appeal,” Alderoty said.
“Either way, the legal status of the XRP as not a security remains unchanged,” he said, and added:
“In the meantime, it’s a business as usual.”
If the SEC also lowered its appeal, it could end the legal battle between the Ripple Labs and the US regulator that lasted more than four years.
Related: US judge denied Ripple, SEC Joint Request to reduce the $ 125m penalty
In December 2020, the SEC filed a lawsuit against Ripple Labs, Chris Larsen and CEO Brad Garlinghouse.
The central claim of the SEC is that Ripple raised $ 1.3 billion by sale XRP as an unregistered security, violation of federal security laws.
In August 2024, Garlinghouse argued that Torres’ Decision on fine ripple labs $ 125 million is “a success” for the firm, pointing out that it is a 94% cut from SEC’s initial plan to fine ripple for $ 2 billion to injuries.
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