The US Securities and Exchange Commission (SEC) and Ripple are one step closer to ending their long-running legal battle. However, the case’s final closure still depends on court approval.
On August 15, the SEC submitted a status report to the Court of Appeals confirming that both parties have agreed to drop their legal appeals and cover their respective costs. This joint move effectively signals the conclusion of nearly five years of litigation.
SEC-Ripple Settlement Still Needs Court Approval
However, the Ripple-SEC settlement cannot take effect until the Court of Appeals formally accepts the parties’ stipulation to dismiss the appeals. Until that approval is granted, the case remains technically open.
Industry observers describe the recent filings as largely procedural.
Pro-XRP Attorney Bill Morgan noted that a final order from Judge Torres could come at any moment, formally closing the chapter on the dispute.
The SEC first filed suit against Ripple in December 2020, alleging that the company raised $1.3 billion by selling XRP tokens without registering them as securities.
In a landmark decision in July 2023, Judge Analisa Torres ruled that XRP sales to retail investors did not constitute securities transactions. She also determined that sales to institutional investors were subject to securities law.
As a result, the court ordered Ripple to pay the financial regulator a $125 million penalty for violating securities laws.
Nonetheless, crypto advocates view the pending court approval as a milestone for the industry. According to them, the resolution could serve as a benchmark for how other digital assets are treated under US law.
Meanwhile, XRP supporters also expect that the official dismissal of the appeals will allow institutional investors, banks, and exchange-traded funds to engage with the token. Notably, XRP has enjoyed significant institutional breakthroughs since the SEC case neared resolution.
So, with the appeals now on the verge of dismissal, the outcome promises greater regulatory clarity that could encourage wider participation in XRP across the institutional sector.
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