SEC, Ripple End XRP Lawsuit: Appeals Dropped in Second Circuit
Key Takeaways
- The SEC and Ripple have agreed to withdraw their appeals in the XRP litigation, ending a major phase of their legal battle.
- The district court’s ruling that XRP sales on public exchanges are not securities transactions remains in effect.
The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have filed to dismiss their respective appeals in the years-long XRP case. This move formally concludes one of the most closely watched crypto enforcement actions, according to a statement released by the SEC on Thursday.
Both parties submitted a joint stipulation to the U.S. Court of Appeals for the Second Circuit on August 7, agreeing to withdraw the SEC’s appeal and Ripple’s cross-appeal.
These filings followed a final judgment in the Southern District of New York, which imposed a $125 million civil penalty on Ripple. The SEC's appeal challenged Judge Analisa Torres’ decision that XRP sales on public exchanges and certain token distributions did not violate securities laws. Ripple's cross-appeal contested the court’s decision holding them liable for unregistered institutional sales.
According to the SEC, this stipulation “resolves the Commission’s civil enforcement action” against Ripple and its executives. The original district court judgment will remain in effect, and no further litigation is expected in the case.
“Following the Commission’s vote today, the SEC and Ripple formally filed directly with the Second Circuit to dismiss their appeals,” stated Stuart Alderoty, Chief Legal Officer of Ripple. “The end…and now back to business.”
What's Next?
With the joint stipulation filed, the U.S. Court of Appeals for the Second Circuit is anticipated to issue an order dismissing both appeals, formally closing the appellate process.
This leaves in place Judge Torres’ Southern District of New York judgment, which includes the $125 million civil penalty and a permanent injunction against Ripple from violating Securities Act registration provisions.
The case now enters the enforcement phase. Ripple must pay the penalty within the specified timeframe and adhere to the terms of the injunction.
Once the payment is made and all pending motions are resolved, the district court will administratively close the case, and the SEC will consider the enforcement action complete.