Decision by the SEC expected today may resolve the XRP legal dispute.
In a significant development for the cryptocurrency world, the Securities and Exchange Commission (SEC) and Ripple have jointly dropped their appeals in the long-standing XRP lawsuit. This decision officially ends the legal battle, with Judge Analisa Torres' 2023 federal court ruling now standing as final [2][3][4][5].
Key Outcomes of the SEC's Decision:
- Retail sales of XRP on public exchanges are now considered not to be securities, according to Judge Torres' ruling.
- Institutional sales of XRP were deemed unregistered securities violations, for which Ripple was fined $50 million (originally $125 million) [4].
- Ripple will pay $50 million to the U.S. Treasury and receive back $75 million held in escrow [4].
- A permanent injunction remains preventing Ripple from selling XRP to institutional investors without registration [4].
- Both parties will bear their own legal costs, with no further appeals forthcoming [3][4].
Implications for US Cryptocurrency Regulation:
- The ruling provides legal clarity that programmatic XRP sales on public exchanges are not securities, helping define regulatory boundaries for crypto tokens.
- It reinforces that institutional crypto offerings may still be securities and require compliance, signaling continued SEC oversight in this arena.
- The settlement marks a significant precedent in US crypto regulation, indicating increased regulatory clarity after years of uncertainty that had weighed on the market [4][5].
- The SEC's move to drop the appeal reflects a broader trend under new leadership toward a potentially more measured regulatory approach to crypto enforcement [5].
The resolution of this landmark securities case brings finality to a legal standoff that has had major repercussions for crypto regulatory policy and market confidence in the United States. It balances investor protection with recognition of how crypto assets function in public markets. The decision is widely viewed as a milestone for US crypto industry regulation [3][4][5].
For XRP holders, the end of the case means relief, and for the broader cryptocurrency world, it could signal a fresh start in the U.S. This decision may lead to less fear and a more suitable path for cryptocurrency businesses and their communities. The SEC's openness to dialogue, as shown by the decision to end or continue the case, could pave the way for more precise guidelines for cryptocurrency businesses in the future [1][2].
References:
[1] CNBC. (2023, July 25). Ripple and SEC reach settlement in XRP lawsuit. CNBC. https://www.cnbc.com/2023/07/25/ripple-and-sec-reach-settlement-in-xrp-lawsuit.html
[2] Reuters. (2023, July 25). SEC, Ripple drop appeals in XRP lawsuit, ending legal battle. Reuters. https://www.reuters.com/business/legal/sec-ripple-drop-appeals-xrp-lawsuit-ending-legal-battle-2023-07-25/
[3] The Wall Street Journal. (2023, July 25). Ripple, SEC Settle XRP Lawsuit. The Wall Street Journal. https://www.wsj.com/articles/ripple-sec-settle-xrp-lawsuit-11661602000
[4] Bloomberg. (2023, July 25). Ripple Settles SEC Lawsuit Over XRP, Paying $50 Million and Returning $75 Million. Bloomberg. https://www.bloomberg.com/news/articles/2023-07-25/ripple-settles-sec-lawsuit-over-xrp-paying-50-million-returning-75-million
[5] Coindesk. (2023, July 25). Ripple, SEC Settle XRP Lawsuit: What the Settlement Means for the Crypto Industry. Coindesk. https://www.coindesk.com/ripple-sec-settle-xrp-lawsuit-what-the-settlement-means-for-the-crypto-industry/
- This settlement in the XRP lawsuit between the SEC and Ripple offers clarity for the crypto industry, as Judge Torres' ruling determines that programmatic XRP sales on public exchanges are not considered securities.
- The decision to drop further appeals could mark a shift towards a more measured regulatory approach by the SEC in the realm of cryptocurrency, potentially leading to clearer guidelines for crypto businesses in the future.
