The U.S. Securities and Exchange Commission (SEC) and Ripple Labs have finally concluded their longtime legal dispute with both parties filing a Joint Stipulation of Dismissal with the U.S. Court of Appeals for the Second Circuit, effectively ending all appeals in the case (Case No. 24-2648(L) and 24-2705(XAP)).
The dismissal marks the resolution of a lawsuit which was initiated in December 2020 when the SEC accused Ripple that its sales of XRP tokens constituted an unregistered securities offering.
Ripple and the SEC move to end litigation
According to court documents submitted to the U.S. Court of Appeals for the Second Circuit, the parties “reached an agreement-in-principle, subject to Commission approval, to resolve the underlying case.”
The case had been on appeal after a final order from the U.S. District Court for the Southern District of New York (No. 20-cv-10832), which gave Ripple a partial win in 2023 by stating that XRP was not a security in secondary market sales.
The joint dismissal had signatures from attorneys representing Ripple, Brad Garlinghouse, Christian A. Larsen, and the SEC, confirming that Ripple and its executives authorized the agency to file the stipulation with their signatures included.
It is a fitting end to a tumultuous lawsuit that has lasted five years and had huge implications on the industry.
Now that the appeals have been withdrawn, Ripple is cleared of any further federal litigation linked to XRP’s regulatory status. The decision is expected to influence how other tokens are treated under U.S. securities law, especially as lawmakers continue to hash out crypto regulation frameworks.
What’s next for XRP following the dismissal?
The conclusion of Ripple’s case with the SEC is bullish news. Following the resolution announcement, the XRP token surged in value, crossing the $3 mark, proof of growing investor optimism.
XRP price rallied after news of SEC settlement. Source: Coinmarketcap
According to data from Glassnode, over 80% of XRP’s supply is in wallets that have not been touched for over a year, evidence of strong holding conviction.
Long-term holders are already in profit, and short-term holders have been cautiously loading up in anticipation of XRP ripping higher.
Another possible catalyst for XRP’s great price action movement is the use case that it has in Japan where Aplus, a credit card firm owned by Shinsei Bank, has partnered with SBI VC Trade to allow customers to convert their reward points into XRP, Bitcoin, and Ethereum.
The token price is currently hovering around $3.27, but going by the bullish sentiments on X since the end of the SEC’s case against Ripple, XRP may be touching new heights soon.
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