The year-long legal battle between Ripple and the US Securities and Exchange Commission (SEK) Seems to be finally completed after Ripple Lab’s CEO Brad Garlinghouse announced Friday that the company is planning to drop its cross -eye in the case.
“Ripple drops our cross appeal, and SEC is expected to hand over their appeal, as they have said in the past,” wrote Garlinghouse on X. “We close this chapter once and for all and focus on what is most important – to build the internet of value.”
XRP rose a modest 1.4% on the news.
The decision comes only one day after US district judge Analisa Torres in the southern district of New York (Sdny) Rejected a joint request from SEC and Ripple to approve a proposed settlement agreement that would cut Ripple’s civil penalty to $ 50 million and dissolve the permanent injunction against the company. It was the latter who seemed to be the sticking point for Torres that argued:
“In fact, if the court should not be concerned that Ripple is violating the law, why do the parties want to remove the injunction that tells Ripple, ‘Follow the Law’? ‘, Torres wrote. This has not changed, nor do the parties claim that it has done so. “
The joint request was the second such request, which was beaten by Torres, which rejected a previous attempt in May with reference to both jurisdiction and procedural deficiencies. As the Court does not show signs of Knudging on the terms of the settlement, Ripple’s decision to withdraw its transverse apparatus ends up by accepting the originally imposed civilian sentence of $ 125 million and presumably leaving the fixed injunction against the company in place.
A spokesman for Ripple Labs did not immediately respond to Coindesk’s request for comment.
SEC first defended Ripple in 2020 under the then chairman Jay Clayton and claimed that the company was offending the federal securities laws through its sale of XRP. After years of lawsuits, Torres eventually completed a 2023 decision that the sale of XRP to retailers on public exchanges did not constitute securities transactions, but found that XRP sales to institutional investors did so, thus violating securities laws.
