tl;dr
The legal battle between Ripple Labs and the SEC ended on August 7 with both parties withdrawing their appeals in the US Court of Appeals for the Second Circuit. The SEC dismissed its appeal, and Ripple dismissed its cross-appeal, each bearing their own legal costs. The case stems from a 2023 ruling...
The long-running legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) officially concluded on August 7, when both parties filed a Joint Stipulation of Dismissal with the US Court of Appeals for the Second Circuit, withdrawing their respective appeals.
According to court documents, the SEC dismissed its appeal (Case No. 24-2648), and Ripple dismissed its cross-appeal (Case No. 24-2705). The joint filing states that both parties agreed to dismiss the cases, with each side responsible for its own legal costs and fees. This filing ends one of the most high-profile crypto enforcement actions, following Judge Analisa Torres’ 2023 ruling which found that Ripple’s institutional XRP sales violated securities laws, while programmatic sales and secondary market transactions did not.
Both Ripple and the SEC had appealed parts of the ruling, with the SEC challenging the judgment’s favorable sections to Ripple, and Ripple contesting the injunction and $125 million civil penalty related to institutional sales. Earlier attempts to settle, including a proposed reduction of penalties and vacating the injunction, were rejected by Judge Torres, pushing the dispute back into the appeal process. The recent dismissal means the original remedies remain in place, with the $125 million penalty held in escrow now destined for the US Treasury.
Following the announcement, XRP’s price surged by 5% within the hour as traders responded to the official closure of the multi-year lawsuit. Despite experiencing a peak in late July and subsequent corrections, the XRP market showed renewed optimism. Going forward, Ripple is barred from conducting unregistered institutional sales of XRP, while the SEC will take no further action on this case. The precedent set by the court's decision serves as a partial victory for both parties, providing a clearer regulatory framework for Ripple even as it remains subject to court-imposed restrictions.