Why the XRP Legal Battle Still Isn't Officially Over

The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) over XRP has not officially ended despite recent developments.

Ripple decided to drop its cross-appeal, and the SEC is expected to drop its own appeal as well, signaling a move toward closing the case after nearly five years of litigation.

However, a federal judge rejected a joint request from Ripple and the SEC to settle the case on reduced terms, specifically refusing to lower Ripple’s $125 million civil penalty to $50 million and to lift the permanent injunction against Ripple’s institutional XRP sales.

The judge, Analisa Torres, emphasized that the injunction remains necessary because there is a "reasonable probability" Ripple could violate securities laws again, and the court cannot simply erase the prior judgment of violation.

The 2023 ruling found that XRP sales on public exchanges did not constitute securities transactions, but institutional sales did violate securities laws, leading to the penalty and injunction.

Since the court rejected the settlement, Ripple and the SEC had two options: continue appeals or end the case by accepting the original penalty and injunction. Ripple chose to drop its appeal, effectively ending litigation but the injunction and legal restrictions remain in place, so the case is not fully resolved in terms of regulatory consequences.

Ripple’s legal team maintains that XRP’s legal status as not a security in the public market remains unchanged, and the company intends to continue its business operations.

While the active courtroom battle is ending with Ripple accepting the $125 million fine and dropping appeals, the permanent injunction against Ripple’s institutional XRP sales remains, and the regulatory framework imposed by the court still applies. This means the XRP legal battle is technically over in litigation terms but not fully resolved in regulatory terms, leaving some restrictions and oversight in place.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)

Posted Using INLEO