-
SEC's Long-Running Case Against Ripple Officially Over
The U.S. Securities and Exchange Commission's 2020 lawsuit against Ripple Labs is officially over, as the two parties have informed the Second Circuit Court of Appeals that they are voluntarily dismissing their respective appeals of a 2023 ruling in the case.
The SEC and Ripple will each bear their own costs, according to the filing. This joint stipulation ends the legal struggle between the SEC and Ripple that began in 2020 when the SEC filed the lawsuit claiming that Ripple violated securities laws through the sale of XRP, a token associated with the company.
After the filing, XRP experienced a 5% surge, trading at around $3.27.
In 2024, the SEC filed an appeal following a 2023 district judge's ruling, which determined that Ripple's sale of XRP to retail traders through exchanges was lawful. Ripple cross-appealed to maintain its defense.
Both parties agreed to drop their appeals in June, according to Ripple CEO Brad Garlinghouse. This decision leaves District Judge Analisa Torres’ penalties untouched, which were based on her finding that Ripple violated securities laws in selling XRP to institutional traders. The penalties included $125 million in fines and a permanent injunction against future law violations.
Earlier this year, Ripple and the SEC halted their appeals after Donald Trump assumed the U.S. presidency and appointed new leadership at the agency. In recent months, the SEC has dropped over a dozen cases and investigations into crypto companies.
Efforts to negotiate lower penalties were unsuccessful, as Judge Torres rejected multiple attempts over procedural and other concerns.
This article has been published on coindesk.com via Yahoo News.
