XRP Prices Climb Following Legal Developments
XRP prices jumped by 3% on Friday after Ripple Labs’ CEO, Brad Garlinghouse, announced that the company would not pursue a cross appeal against the U.S. Securities and Exchange Commission (SEC). He expressed optimism regarding the SEC’s own appeal, suggesting that they might not succeed either.
“Ripple is dropping our cross appeal. As they noted before, we expect the SEC to lose their appeal,” Garlinghouse shared on X, an online platform. In the hours following his statement, XRP saw an increase from 3.36% to $2.18, according to data from COINMARKETCAP.
Garlinghouse Emphasizes Focus on Core Mission
Garlinghouse further stated, “We’re closing this chapter completely and focusing on what’s most important: building an internet of value. We’re locking in.”
The news arrived just one day after a U.S. District Court denied a joint request from the SEC to modify a ruling that designated XRP’s main sale as a securities transaction, thus imposing a civil penalty of $125 million.
“Ultimately, the court partially granted the SEC’s request for an injunction and civil penalties, indicating that Ripple was operating at the edges of legality. The order indicates that while they haven’t fully crossed the line, further violations might occur,” Judge Analisatore commented.
Ripple’s Legal Counsel Weighs In
In response to the ruling, Stuart Aldeloty, Ripple’s Chief Legal Officer, remarked, “The ball is back in our court.” He elaborated that the court presented two options: to either dismiss an appeal concerning historical institutional sales findings or to proceed with it.
“Regardless of the decision made, XRP’s legal status as a non-security remains unchanged,” Aldeloty added.
“Until then, it’s business as usual.”
If the SEC decides to withdraw its appeal, it could signal an end to a legal dispute with Ripple Labs that has persisted for over four years.
In December 2020, the SEC initiated legal action against Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen. The SEC’s primary allegation was that Ripple sold XRP as an unregistered security, raising $1.3 billion in violation of federal securities laws.
In August 2024, Garlinghouse described the court’s decision to reduce Ripple Labs’ civil penalty to $125 million as a favorable outcome, noting it was a significant decrease from the initial $2 billion sought by the SEC.
