After five years in court, Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have agreed to end their dispute. Both parties informed the Second Circuit Appeals Court that they are dropping their appeals, bringing to a close a case that began in 2020. The SEC had accused Ripple of selling XRP without complying with securities laws.

Ripple and SEC Confirm Settlement, Dismiss Appeals

In a joint filing submitted on Thursday, Ripple and the SEC confirmed that each side will cover its own legal fees. This agreement officially closes the legal battle that began in 2020, when the SEC accused Ripple of violating securities laws by selling XRP. Ripple’s Chief Legal Officer, Stuart Alderoty, stated that the case is now behind them and the company can focus on business again. Following the SEC’s internal vote, both parties formally notified the Second Circuit Appeals Court that they are dismissing their appeals.

Court’s 2023 Decision Stands as Ripple-SEC Appeals Dropped

The dispute reached a key moment in July 2023, when federal judge Analisa Torres issued a ruling that was part win, part loss for both sides. She ruled that XRP sold to everyday investors on public exchanges did not qualify as a security. However, XRP sold to large institutional buyers was classified as an unregistered security. Following this, Ripple was ordered to pay $125 million in fines—a significantly lower amount than the $2 billion the SEC initially demanded. The SEC disagreed with parts of the ruling and appealed to challenge it. Ripple also appealed to defend the judge’s decision in their favor. As of now, both sides have dropped their appeals, making the 2023 ruling the final outcome on the case. This decision came against the backdrop of a shifting regulatory climate. The SEC filed the lawsuit during Donald Trump’s first term in office, a time when crypto enforcement was tougher. Now, with Trump back for a second term, his administration is taking a lighter touch on regulating cryptocurrencies. This change influenced the SEC’s decision to drop several lawsuits, Ripple’s case included. In May, both parties agreed on a settlement and sought to lower the $125 million penalty against Ripple. However, the judge rejected this, emphasizing that Ripple must continue to comply with securities laws despite the SEC’s change in focus. Since Trump’s new term began, the SEC has dropped numerous crypto-related cases. Ending the appeals fits with this move toward a softer regulatory stance.

XRP Price Recovers as Technical Indicators Signal Potential Upswing

The end of the legal drama helped XRP rebound after falling from $3.50 to $2.70 in late July. In the last 24 hours, it gained over 11%, showing investor confidence returning as uncertainty fades. Looking at XRP’s price charts, technical indicators show promising signs:

The 50-day Simple Moving Average (SMA) has risen above the 100-day SMA, often a sign of a strong upward trend.
XRP’s current price is holding above both SMAs, which act as support levels around $2.74 and $2.51.
The MACD indicator shows the line climbing toward the signal line, hinting that selling pressure is fading and a bullish crossover could spark further gains.

Frequently Asked Questions (FAQ)

Ripple vs. SEC Case Resolution

Q: What was the main outcome of the Ripple vs. SEC case?

Q: What was the key ruling from the July 2023 decision that now stands?

Q: Did Ripple have to pay a penalty?

Q: Who covers the legal fees?

Q: How might the change in presidential administration influence this outcome?

XRP Price and Market Impact

Q: How did the end of the legal drama affect XRP's price?

Q: What technical indicators suggest a potential upswing for XRP?

Q: What is a potential long-term prediction for XRP's price?

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Ripple and SEC End Long Legal Battle as Appeals Are Dropped