XRP Surges 3% as Ripple CEO Garlinghouse Confirms Withdrawal of SEC Cross‑Appeal”
Just hours after Ripple Labs CEO Brad Garlinghouse announced that the company is dropping its cross-appeal against the US Securities and Exchange Commission (SEC) and expects the regulator to follow suit, XRP’s price surged more than 3% on Friday.
“Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said,” Garlinghouse stated in an X post on Friday. XRP, the cryptocurrency linked to Ripple Labs, surged 3.36% to $2.18 just five hours after the post, as per CoinMarketCap data.
Garlinghouse announces a return to normal operations
“We are definitively closing this chapter and concentrating on the key priority: constructing the Internet of Value.” “Lock in,” Garlinghouse added.
The announcement follows a day after the US district court rejected a joint motion from the SEC and Ripple that sought an indicative ruling to lower a $125 million civil penalty and overturn an order that classified primary sales of XRP to institutional investors as securities transactions under Article 5 of the Securities Act.
“Ultimately, the Court granted part of the SEC’s request for an injunction and a civil penalty because it found that ‘Ripple’s willingness to push the boundaries of the [Summary Judgment] Order evinces a likelihood that it will eventually, if it has not already, cross the line,’” Judge Analisa Torres said.
Ripple lawyer states that XRP’s legal status “remains unchanged.”
Following the ruling, Stuart Alderoty, chief legal officer at Ripple, remarked, “The ball is back in our court.”
Alderoty stated, “The Court provided us with two choices: to dismiss our appeal against the finding on historic institutional sales or to continue with the appeal.”
“Either way, XRP’s legal status as not a security remains unchanged,” he said, adding:
In the meantime, everything is proceeding as normal. Should the SEC decide to withdraw its appeal, this could conclude the legal struggle between Ripple Labs and the US regulator that has endured for over four years.
The SEC initiated legal action in December 2020 against Ripple Labs, as well as Chris Larsen and CEO Brad Garlinghouse.
Ripple was accused by the SEC of generating $1.3 billion through the sale of XRP as an unregistered security, which constitutes a breach of federal securities laws.
Garlinghouse contended in August 2024 that Torres’ ruling to impose a $125 million penalty on Ripple Labs was “a victory” for the company, noting that it represented a 94% decrease from the SEC’s original proposal to fine Ripple $2 billion for damages.
Disclaimer and Risk Warning
CoinWick does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. Coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.