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2d ago

Ripple and SEC Drop Appeals, Leave $125 Million XRP Penalty Intact

Ending a four-year dispute over XRP’s legal status frees Ripple and the SEC to shift their focus beyond the courts.

The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo

Overview

  • On June 27, Ripple announced it will drop its cross appeal in the SEC lawsuit and the regulator is expected to withdraw its appeal, bringing the four-year case to a close.
  • The decision leaves intact Judge Analisa Torres’s July 2023 ruling that exempted programmatic XRP sales to retail investors but deemed $728 million in institutional sales as unregistered securities.
  • Torres rejected joint requests this spring to cut the $125 million penalty to $50 million or lift the injunction on Ripple’s XRP sales.
  • The litigation began in December 2020 when the SEC sued Ripple for allegedly raising funds through unregistered XRP token sales.
  • With no further appeals pending, the outcome solidifies a key legal precedent for how digital asset offerings are regulated under U.S. securities laws.