Quick Facts
Ripple agrees to drop cross-appeal with SEC, securing a $75 million refund.
Ripple Set to Withdraw Cross-Appeal in SEC Case, Securing Refund from Lower Court Ruling
Background: The Ripple-SEC Dispute
In December 2020, the Securities and Exchange Commission (SEC) charged Ripple and its executives with selling unregistered securities through its XRP token offerings. Ripple has consistently maintained that XRP is a sovereign currency and not a security, while the SEC has argued that the token constitutes an investment contract and is therefore subject to securities laws.
The Cross-Appeal: A Tactical Shift
By dropping the cross-appeal, Ripple is effectively abandoning any hopes of reversing the lower court’s ruling that XRP is a security. This move may allow Ripple to conserve resources and energy, as it will no longer need to continue defending its cross-appeal.
A Refund on the Horizon?
The agreement to drop the cross-appeal also comes with a significant financial benefit for Ripple. According to Stuart Alderoty, the company will be refunded roughly $75 million from the August 2024 judgment. This is a substantial amount, and one that will undoubtedly help Ripple to offset its legal expenses to date.
Implications for the Cryptocurrency Community
The ripple effects (pun intended) of Ripple’s decision are far-reaching, and the cryptocurrency community is likely to be eagerly anticipating the implications. For one, this development may increase the pressure on other regulatory bodies to clarify their stance on digital assets.
Moreover, this decision may embolden other digital asset projects to come forward and assert their own sovereignty. By dropping the cross-appeal, Ripple is effectively acknowledging that the regulatory landscape is far from settled, and that other actors may need to navigate similar legal challenges.
