Cryptocurrency company Ripple has taken a significant step back in its nearly five-year-long lawsuit with the U.S. Securities and Exchange Commission (SEC). Ripple announced that it has withdrawn its appeal, choosing between “continuing or abandoning” the court’s two options.
Ripple CEO Brad Garlinghouse announced the decision today on social media platform X, saying the SEC is expected to similarly withdraw its own appeal. “We are closing this chapter forever and focusing on what really matters: building the Internet of Value,” Garlinghouse said.
This development comes just after Judge Analisa Torres rejected the parties’ conditional settlement offer, which would have lifted Ripple’s preliminary injunction and reduced the company’s fines to $50 million. However, Torres noted that the parties failed to justify the change.
If the SEC also drops its appeal, Ripple is expected to pay a total fine of $125 million, ending the case entirely.
Following the development, a limited increase was observed in the XRP price. Market observers state that this step may open the door for new investment products. ETFStore President Nate Geraci said, “The closure of this case paves the way for spot XRP ETFs.” Geraci also argued that major investment companies like BlackRock are now in a more advantageous position to enter the XRP market.
There are currently several XRP ETF applications before the SEC, and according to Bloomberg analysts, there is a 95% chance that these applications will be approved by the October deadline.
*This is not investment advice.
Read the full article here
