Ripple to drop cross-appeal against the SEC, ending the year legal battle with the SEC
The long -year legal battle between Ripple and the US Securities and Exchange Commission (Sec) It appears to have finally ended, after Ripple Labs CEO Brad Garlinghouse announced Friday that the company plans to drop its cross-appeal in the case.
“Ripple is lowering our appeal to the cross, and the SEC is expected to lower their appeal, as they said before,” Garlinghouse Write to x. “We’re closing this chapter once and for all, and focusing on what’s most important – building the internet of value. I -lock the.”
XRP climbed a moderately 1.4% in the news.
The decision will come just one day after US District Judge Analisa Torres of the Southern District of New York (SDNY) A joint request from the SEC and Ripple was rejected to approve a suggested agreement that would destroy Ripple’s civil penalty for $ 50 million and dissolve a permanent injunction against the firm. This is the latter that appears to be the sticky point for Torres, who has argued:
“In fact, if the court should not be concerned about the ripple that violates the law, why do the parties want to eliminate the injunction saying to Ripple, ‘Follow the law’?,” Torres wrote. “When the court imposed the injunction, it was done because it found a ‘reasonable possibility’ that Ripple would continue to violate the laws of federal security. It did not change, nor did the parties claim to have it.”
The joint request was the second request that Torres slapped, denied an earlier attempt in May citing both the constituents and methods of flaws. In court that does not show signs of budging in terms of settlement, Ripple’s decision to withdraw its cross-appeal ends in the case by receiving a pre-imposed civil penalty of $ 125 million and maybe leaving a permanent injunction against the firm in the area.
A speaker for Ripple Labs did not immediately respond to CoinDesk’s request for comment.
The SEC first accused Ripple in 2020 under chair Jay Clayton, allegedly the company violated federal security laws by selling XRP. After years of trial, Torres eventually ended with a 2023 decision that XRP sales to retail businessmen in public exchanges did not develop security transactions, but found XRP sales in institutional investors, thus violating security laws.
