Ripple CEO Declares End to SEC Lawsuit: “We Will Close This Chapter Once and for All”
Ripple Officially Ends Legal Dispute With SEC
In a highly anticipated move, Ripple CEO Brad Garlinghouse has officially announced that the company will drop its cross-appeal in the lawsuit against the U.S. Securities and Exchange Commission (SEC). This decision marks a crucial turning point in the years-long legal dispute.
CEO Brad Garlinghouse’s Statement
Through a post on platform X, Garlinghouse shared: “We will close this chapter once and for all, and focus on what matters most – building the Internet of Value.” The statement was concluded with a “lock it down” symbol, demonstrating Ripple’s determination to completely end the lawsuit.
A cross-appeal is a legal procedure that allows one party in a lawsuit to challenge different aspects of the court’s ruling. Ripple’s decision to drop the cross-appeal shows the company wants to end all legal disputes to focus on business development.
History of Ripple vs SEC Lawsuit
Beginning of Dispute in 2020
The lawsuit began in 2020 when the SEC accused Ripple of illegally raising $1.3 billion through XRP token sales. According to SEC allegations, XRP was considered an unregistered security, violating U.S. securities regulations.
Judge Torres’ Landmark Ruling
Over a year ago, Judge Torres at the U.S. District Court for the Southern District of New York issued a pivotal ruling:
Ruling favorable to Ripple:
- Programmatic XRP sales did not violate securities law
- Reason: There was a blind auction process for these transactions
Ruling unfavorable to Ripple:
- Direct token sales to institutional investors were considered securities
- Consequence: Ripple was fined $125 million
Recent Developments
Rejection of Injunction Dismissal
One day before Garlinghouse’s announcement, Judge Torres rejected requests from both Ripple and the SEC to dismiss the injunction. Previously, both parties had asked the court to:
- Dissolve the injunction against Ripple
- Allow the SEC to receive $50 million out of the total $75 million fine
- Distribute the remaining $25 million to Ripple
Ripple’s Decision Not to Appeal
Ripple had made positive moves toward ending the lawsuit when the company decided not to file a cross-appeal in March. CEO Garlinghouse’s latest decision officially closes this chapter.
Significance of the Decision for Ripple
Focus on Business Development
Ending the lawsuit helps Ripple:
- Save significant legal costs
- Focus resources on technology development
- Build the “Internet of Value” as stated in their goals
Positive Market Impact
This decision is expected to:
- Bring stability to XRP price
- Strengthen investor confidence
- Create foundation for Ripple’s sustainable development
Conclusion
CEO Brad Garlinghouse’s announcement marks an important milestone in Ripple’s history. Ending the lawsuit with the SEC not only brings legal stability but also opens new opportunities for the company to focus on its mission of building the “Internet of Value.”
This move demonstrates Ripple’s maturity and long-term vision in prioritizing business development over prolonging legal disputes. With this chapter “locked down,” Ripple is ready to enter a new phase of development.
