In a filing before the U.S. Court of Appeals for the Second Circuit, the Securities and Exchange Commission and Ripple Labs stipulated to dismiss their respective appeals, effectively ending the multi-year litigation over XRP’s classification. The resolution leaves intact a prior District Court ruling determining that XRP sales on public exchanges did not constitute unregistered securities transactions, while institutional sales remained subject to regulation.
Ripple Chief Legal Officer Stuart Alderoty celebrated the development on social media, stating that both parties “jointly agreed to end the appeals and return to business.” The joint motion allocates legal costs to each side and solidifies the final judgement without further challenge.
The original action, filed in December 2020, centered on whether Ripple’s XRP token offerings violated securities laws. A 2023 ruling by Judge Analisa Torres held that public market transactions were lawful, while holding Ripple liable for $125 million in institutional sales. The appeals process had delayed finality and created ongoing uncertainty for market participants.
Market reaction included a notable uptick in XRP price following the announcement. With the enforcement action concluded, XRP trading and institutional adoption may proceed under clearer legal parameters, potentially paving the way for renewed product development and exchange integration without pending litigation concerns.
The joint withdrawal underscores evolving regulatory dynamics under new SEC leadership and may serve as a template for resolving future crypto enforcement disputes, balancing regulatory objectives with market stability.⚖️
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