What happened?
Ripple has officially dropped its appeal in the lawsuit against the U.S. Securities and Exchange Commission (SEC), marking an end to this high-profile case. The SEC is also expected to withdraw its appeal, thus keeping the 2023 rulings by Judge Analisa Torres intact. These rulings determine that Ripple’s institutional sales of XRP violated securities laws, but exchange-based sales did not.
Who does this affect?
This decision impacts Ripple, its executives, and investors, as well as the broader cryptocurrency market. XRP holders and traders are directly affected, as this ruling confirms XRP is not deemed a security in public exchange sales. Legal clarity from this decision may influence other crypto companies facing similar regulatory scrutiny.
Why does this matter?
The market reacted positively to this legal resolution, boosting XRP prices by 4.4% within 24 hours. With regulatory clarity, Ripple can focus on expanding XRP’s use in finance and payments, potentially attracting more institutional interest. This conclusion could spark broader market optimism and enhance confidence in crypto assets amid regulatory conversations.