The long-standing legal dispute between the Securities and Exchange Commission (SEC) and blockchain payment company Ripple Labs, has officially concluded, following the new regulatory dawn for digital assets in the US.
SEC And Ripple Agree To Dismiss Appeals
In a recent court filing, both the SEC and Ripple announced their agreement to dismiss their appeals, effectively ending one of the most scrutinized lawsuits in the crypto sector’s history.
The joint stipulation of dismissal was submitted to the US Court of Appeals for the Second Circuit, where both parties confirmed their decision to withdraw the SEC’s appeal (No. 24-2648) and Ripple’s cross-appeal (No. 24-2705).
Notably, the agreement stipulates that each party will bear its own legal costs and fees. This resolution comes after nearly four years of legal wrangling that has significantly impacted the cryptocurrency industry.
The saga began in December 2020, when the SEC filed a lawsuit against Ripple Labs and its top executives, accusing them of conducting unregistered securities offerings through the sale of XRP. Ripple has consistently maintained that XRP is a digital currency, not a security.
Chief Legal Officer Celebrates Court Victory
The case has seen numerous developments, including a crucial ruling in July 2023 by Judge Analisa Torres of the Southern District of New York.
The judge determined that XRP sales on public exchanges did not qualify as securities transactions, a partial victory for Ripple. However, the court allowed the case to continue on other grounds, particularly concerning institutional sales of XRP.
Ripple’s Chief Legal Officer, Stuart Alderoty, took to social media platform X (formerly Twitter) to express his thoughts on the conclusion of the legal battle. He noted the Commission’s vote and highlighted the formal filing to dismiss the appeals, stating, “The end… and now back to business.”
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