SEC and Ripple End XRP Lawsuit: All Appeals Dismissed
XRP Lawsuit Ends as Ripple and SEC Drop Appeals
The protracted legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached its official conclusion. On August 7, both parties filed a Joint Stipulation of Dismissal with the US Court of Appeals for the Second Circuit, formally withdrawing their appeals.
Appeals Officially Dismissed
Court documents confirm that the SEC dismissed its appeal (Case No. 24-2648), and Ripple dismissed its cross-appeal (Case No. 24-2705). The joint filing explicitly states that both parties “stipulate to the dismissal” of the cases, with each side responsible for covering their own legal expenses.
This action brings to a close one of the most closely watched enforcement cases in the history of cryptocurrency. It represents the final chapter following Judge Analisa Torres’ 2023 ruling, which determined that Ripple’s institutional sales of XRP violated securities laws, while programmatic sales and secondary market transactions did not.
Implications of the Dismissal
Both Ripple and the SEC had appealed aspects of Judge Torres' ruling. The SEC aimed to challenge elements of the judgment that were not in its favor, while Ripple contested the injunction and the $125 million civil penalty imposed for institutional sales.
Earlier this year, attempts were made to reach a settlement that would reduce Ripple’s penalties and eliminate the injunction. However, Judge Torres rejected this proposal in June, pushing both parties back into the formal appeals process.
With the appeals now dismissed, the original remedies stand unchanged. The $125 million penalty, currently held in escrow, will be transferred to the U.S. Treasury.
XRP Market Impact
Following the announcement, XRP experienced a surge, reflecting the market's positive reaction to the resolution of this multi-year legal battle.
Ripple is still restricted from conducting unregistered institutional sales of XRP, while the SEC will not pursue further action in this specific case. The precedent established by Judge Torres’ ruling serves as a partial victory for both parties.
With the appeals dismissed and the case officially closed, Ripple can now operate with greater regulatory clarity, albeit still subject to the court-imposed restrictions. For projects navigating complex regulatory landscapes, robust security measures and smart contract audits are paramount. Platforms like Codeum offer comprehensive services to ensure blockchain security and compliance, assisting developers in building secure and reliable applications.