The legal battle of the years between Ripple and the US Values and Securities Commission. (SECOND) It seems to have finally come to an end, after the CEO of Ripple Labs, Brad Garlinghouse, announced Friday that the company plans to abandon its cross appeal in the case.
“Ripple is dropping our cross appeal, and the SEC is expected to eliminate its appeal, as previously said,” Garlinghouse wrote in X. “We are closing this chapter once and for all, and focusing on what is most important: build the value of value. Closing.”
XRP rose a modest 1.4% in the news.
The decision occurs only one day after the American district judge Analisa Torres in the Southern New York District (SDNY) He rejected a joint application of the SEC and Ripple to approve a proposed liquidation agreement that would reduce the civil fine of Ripple to $ 50 million and dissolve the permanent mandate against the company. It was the last one that seemed to be the point of conflict for Torres, who argued:
“In fact, if the court does not worry about violating the law, why do the parties want to eliminate the court order that Ripple tells,” follow the law, “Torres wrote. “When the court imposed the court order, he did it because he found a” reasonable probability “that Ripple continues to violate federal values laws. This has not changed or the parties claim that he has.”
The joint application was the second request of this type slapped by Torres, who rejected an earlier attempt in May citing jurisdictional and procedure failures. With the Court that does not show signs of outbreak in the terms of the agreement, Ripple’s decision to withdraw its cross appeal ends the case by accepting the civil sanction initially imposed from $ 125 million and presumably leaving the permanent court order against the company in its place.
A Ripple Labs spokesman did not immediately respond to the request for comments from Coindesk.
The SEC first sued Ripple in 2020 under the then Jay Clayton armchair, claiming that the company violated federal securities laws through its XRP sales. After years of litigation, Torres finally concluded in a 2023 ruling that XRP sales to retail merchants in public exchanges did not constitute values transactions, but discovered that XRP sales to institutional investors, thus violating the laws of values.
