The legal battle for years between Ripple and the Securities and Exchange American Commission (SECOND) Seems to have ended finally, after the CEO of Ripple Labs, Brad Garlinghouse, announced on Friday that the company planned to drop its tip in the case.
“Ripple abandons our crossed call, and the dry should abandon their appeal, as they have already said,” wrote Garlinghouse on X. “We are closing this chapter once and for all, and we focus on what is most important – Build the Internet of value. Lock.”
XRP climbed 1.4% modest on news.
The decision comes just a day after the American district judge Analisa Torres from the South New York District (Sdny) rejected a joint request for the SEC and Ripple to approve a proposed settlement agreement which would reduce the civil penalty of Ripple to $ 50 million and dissolved the permanent injunction against the company. It was the latter who seemed to be the point of collision for Torres, who argued:
“Indeed, if the court should not be concerned about the fact that Ripple violated the law, why do the parties want to eliminate the injunction which says Ripple,” follow the law, “wrote Torres. “When the court imposed the injunction, it did it because it noted a” reasonable probability “that Ripple would continue to violate federal securities. This has not changed, and the parties do not claim that she did it. ”
The joint request was the second request of this type struck by Torres, which rejected an earlier attempt in May, citing jurisdictional and procedural defects. The court not showing any signs of a mounted on the terms of the regulation, Ripple’s decision to withdraw its intermediate appearance puts an end to the case by accepting the initially imposed civil sentence of $ 125 million and probably leaving the permanent injunction against the company in place.
A spokesperson for Ripple Labs did not immediately respond to Coindesk’s comments.
The SEC continued Ripple for the first time in 2020 under Jay Clayton at the time, alleging that the company had raped federal securities laws thanks to its XRP sales. After years of dispute, Torres finally concluded in a decision in 2023 that XRP sales to retail merchants on public scholarships did not constitute transactions in securities, but found that XRP sales to institutional investors have done so, thus violating securities.
