XRP spikes after Garlinghouse says Ripple dropping SEC cross-appeal

Ripple Labs’ decision to drop its cross-appeal against the U.S. Securities and Exchange Commission (SEC) has triggered a notable rally in XRP’s price, with the token surging over 3% shortly after the announcement by CEO Brad Garlinghouse. This move is seen as a significant step towards ending the years-long legal battle between Ripple and the SEC, which began in December 2020.

Brad Garlinghouse announced that Ripple is dropping its cross-appeal and expects the SEC to do the same, signaling the closure of a contentious chapter for the company and XRP.

Following the announcement, XRP’s price jumped more than 3%, reaching $2.18 within hours according to CoinMarketCap data.

The market response reflects optimism about the resolution of regulatory uncertainty, which has weighed on XRP for years.

Ripple’s Chief Legal Officer, Stuart Alderoty, indicated that this decision allows Ripple to focus on innovation and expansion, potentially strengthening its position in the global payments industry.

The announcement followed a U.S. district court’s denial of a joint motion by Ripple and the SEC to reduce Ripple’s civil penalty and reverse an order that classified certain XRP sales as securities transactions.

Ripple will accept the original civil penalty of $125 million, and the permanent injunction is likely to remain in place.

While the case is not formally closed until both parties file motions to dismiss their appeals, the expectation is that the SEC will also withdraw its appeal, leaving Judge Torres’ ruling on programmatic sales of XRP intact.

This legal clarity could pave the way for potential XRP-spot ETF approvals, further boosting investor sentiment and price prospects.

XRP’s price reaction was positive but measured, with a 3% spike that outperformed the broader crypto market’s gains on the same day.

Investors now await the SEC’s formal withdrawal and potential developments regarding XRP-based ETFs, which could drive further price action.

Ripple’s move to drop its cross-appeal marks a turning point for the company and XRP, with market participants hopeful for regulatory clarity and new growth opportunities in the wake of the legal dispute.

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