- The XRP lawsuit ends as the court approves the dismissal of appeals from both Ripple and the SEC.
- Ripple will pay a $125 million penalty for securities violations related to institutional XRP sales.
- XRP price rises over 8% after the lawsuit ends and investors show renewed interest in the token.
The lawsuit between the SEC and Ripple Labs has officially ended after the dismissal of the appeals. The U.S. Second Circuit Court of Appeals granted approval to the joint stipulation of dismissal by the two parties. This marks the end of a legal dispute that lasted for almost five years.
The case had been paused as Ripple and the SEC worked on settlement terms. With the appeals withdrawn, the case will now move into final enforcement proceedings at the district court.
Ripple had filed a cross-appeal, while the SEC had appealed a previous ruling by Judge Analisa Torres. The judge had ruled that XRP was not a security in secondary market transactions. However, she stated that some institutional sales fell under securities laws. This partial win for both sides led to the eventual dismissal deal.
Monetary Penalty Set at $125 Million
As part of the resolution, Ripple will pay a $125 million civil penalty. This payment addresses securities violations tied to XRP’s institutional sales. The funds had been placed in escrow, pending the outcome of the appeal process.
Both Ripple and the SEC had earlier agreed to reduce the amount to $50 million. However, Judge Torres declined to issue a ruling supporting that change. The final payment will now reflect the original penalty outlined in the court’s decision.
This payment clears the path for Ripple to move past its long-standing legal issues with the Commission. The company is now expected to focus on business operations and compliance going forward.
Price Reaction and Investor Sentiment
XRP’s price increased in response to the closure of the lawsuit. The altcoin was trading at around $3.10 which was a rise above 8% in the last 24 hours. There was also an increase in trading volumes reflecting signs of renewed market interest and investor sentiment.
The case’s conclusion removes uncertainty that had affected XRP’s value for years. Traders now anticipate further developments tied to regulatory clarity in the crypto sector. Analysts are watching for continued movement as the market absorbs the legal outcome.
XRP ETF Decisions Await SEC Ruling
Attention has now shifted to pending XRP ETF applications. The SEC recently delayed five XRP ETF filings until October. October 18 is the final deadline for the Commission to decide on the Grayscale XRP fund.
With the lawsuit resolved, some analysts expect the SEC to approve one or more of the pending ETF proposals. This would mark another major step for XRP’s presence in regulated markets.
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