Ripple Drops The Cross-Appeal: The Ripple And SEC Legal Battle To End

Ripple Vs SEC: The Long Standing Legal Battle

The long-running battle between Ripple and the U.S. Securities and Exchange Commission is approaching its end. On Wednesday, Ripple’s chief legal officer, Stuart Aldetory, confirmed through his X account (previously known as Twitter) that Rippe had decided not to file a cross-appeal. Stuart confirmed through his X account his potential “last update” regarding the long-running case which has been followed back and forth for four years. The Ripple CEO Brad Garlinghouse confirmed that the U.S. Securities and Exchange Commission had pulled their appeal as a part of the earlier ruling.

Cross appeal helps a party to challenge through a different aspect of the court’s ruling. Aldetory expressed that the SEC will be retaining the $50 million fine that was held in the interest-bearing account and the remaining $75 million will be returned to Ripple. The balance is expected to be returned to Ripple and the agency is also looking forward to asking the court to disregard the standard injection that was imposed as per the request of the SEC. The SEC has declined comments regarding this. Aldetory noted that this would be a matter of commission vote, standard court processes, and final documents. 

Analisa Torres, the U.S. District Court for the Southern District of New York Judge has previously ruled in 2023 that some of the sales of Ripple known as programmatic because of the blind bid process in place of them did not violate the securities law. However, Torres ruled that the other direct token sales for the institutional investors are securities. That second part of the argument meant that Ripple would have to pay a fine of $125 million as a part of an institutional investor. Following the latest Trump administration, the U.S. Securities and Exchange Commission has taken a new direction.

This was followed by the exit of the former Chair Gary Gensler in January. Previously Gensler has confirmed that most cryptocurrencies were securities and the crypto platforms were naked to register within the agency. The initiatives were made under the administration of Joe Biden. Under the administration of Gensler, the agency has bought legal cases against major cryptocurrency exchanges and firms but the legal case was brought before Gensler became the chair.

Over the past few weeks, the U.S. Securities and Exchange Commission has revoked the controversial crypto accounting guidance. They are looking forward to re-examining the rules affecting the crypto, creating a crypto task force, and issuing statements concerning the proof-of-work and meme coins.

Currently, the SEC will retain its $50 million from the previously imposed $125 million fine. The remaining balance of $75 million will be returned to Ripple. Additionally, Aldetory stated that the agency will be requesting the court to lift the currently placed standard injunction. The resolutions after completing the process can make the case closed.

Legal Proceedings: Why The Importance?

Multiple factors contribute to the importance of this legal battle. The resolution of the case can have major significance on the broader cryptocurrency industry. This is a precedent for blockchain firms and regulatory bodies to navigate legal disputes. The outcomes of the legal battle can influence future compliance standards and regulatory frameworks. This can potentially foster a stable and predictable digital asset environment. 

The industry holders will be keenly observing the case and the final stages of approval. The resolutions made in the high-profile legal battles could result in far-reaching implications. This can contribute to the future operations of blockchain firms and cryptocurrency regulation. The crypto community is actively observing the recent shifts and changes.