Ripple’s Strategic Move to End the SEC Legal Dispute
In a significant turn of events, Ripple, a pioneering blockchain firm, is taking decisive steps to conclude its protracted legal dispute with the Securities Exchange Commission (SEC). This decision follows a series of recent legal developments that have shaped the course of this high-profile case.
Ripple Abandons Cross-Appeal: A Statement from the CEO
Brad Garlinghouse, the CEO of Ripple, announced that the company is withdrawing its cross-appeal. The SEC is anticipated to reciprocate, which would effectively bring the case to a conclusion. In a social media post dated June 28, Garlinghouse emphasized, “Ripple is dropping our cross-appeal, and the SEC is expected to drop theirs. We’re closing this chapter and focusing on building the Internet of Value.”
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Judge’s Decision on Ripple-SEC Joint Motion
This strategic move by Ripple follows U.S. District Judge Analisa Torres’s decision to reject a joint motion from Ripple and the SEC. The motion sought an indicative ruling to reduce a $125 million civil penalty and aimed to overturn a previous finding related to Ripple’s institutional XRP sales being deemed unregistered securities offerings.
XRP’s Status as a Non-Security Remains Unaffected
Judge Torres delivered a nuanced ruling, partially granting the SEC’s request for an injunction and penalty. However, she raised concerns about Ripple’s past behavior concerning court-imposed restrictions. Despite these developments, Ripple’s leadership asserts that the legal status of XRP remains unchanged by the latest ruling.
Ripple now faces a critical decision: either dismiss its appeal challenging the finding on historical institutional sales or continue with the legal proceedings. Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted this decision point in a statement, reiterating that XRP’s legal status as a non-security is unaltered.
Background of the SEC Lawsuit Against Ripple
The SEC initially filed a lawsuit against Ripple in December 2020, accusing the company of raising $1.3 billion through unregistered XRP sales. While Ripple was not entirely cleared of wrongdoing, Garlinghouse previously characterized the $125 million penalty, imposed in August 2024, as a strategic victory, significantly lower than the SEC’s initial demand of $2 billion.
Should the SEC follow through with retracting its appeal, it would signify the conclusion of one of the most significant regulatory enforcement cases in the history of the cryptocurrency industry.
XRP Market Performance and Price Analysis
Amid these developments, XRP has exhibited bullish trends, appreciating by 4.5% over the past 24 hours to reach $2.19 at the time of writing. Over the past week, XRP has gained more than 2%, showcasing resilience in the face of legal uncertainties.
However, technical indicators present a mixed outlook. XRP is trading below its 50-day simple moving average (SMA) of $2.29, suggesting weakened short-term momentum, yet it remains well above its 200-day SMA of $1.82, indicating sustained long-term strength. The 14-day Relative Strength Index (RSI) is at 47.53, reflecting neutral market conditions.
