The price of XRP jumped.
By more than 3% on Friday just hours after CEO Brad Garlinghouse stated that the company would abandon its mutual appeal against the U.S. Securities and Exchange Commission (SEC), expecting the regulatory body to do the same.
Garlinghouse said in a post on X on Friday: "Ripple is abandoning its mutual appeal, and the SEC is expected to abandon its appeal as I previously mentioned." XRP $2.18.
The cryptocurrency linked to Ripple Labs rose by 3.36% to reach $2.18 just five hours after the post, according to CoinMarketCap data.
Garlinghouse announces a return to normal operations.
Garlinghouse added: "We are closing this chapter once and for all and focusing on what matters most - building the Internet of value. Hold on tight."
This announcement comes just a day after a U.S. district court denied a joint request from the SEC and Ripple seeking a ruling to reduce a $125 million civil penalty and to overturn an order defining initial sales of securities.$XRP For institutional investors as securities transactions under Section 5 of the Securities Act.
In the end, the court partially granted the U.S. Securities and Exchange Commission's (SEC) request for an injunction and civil penalty, as the court found that "Ripple's willingness to exceed the limits of the [summary judgment] shows the likelihood of it exceeding the limits in the end, if it hasn't already exceeded them," according to Judge Analisa Torres.
Ripple's lawyer says the legal status of XRP "has not changed."
After the ruling, Stuart Alderoty, Ripple's Chief Legal Officer, said, "The ball is back in our court."
Alderoty added: "The court gave us two options: reject our appeal challenging the outcome related to the historical institutional sales or proceed with the appeal."
He said, "In any case, the legal status of XRP as a non-security remains unchanged," adding:
"Meanwhile, things are proceeding as usual."
If the U.S. Securities and Exchange Commission (SEC) drops its appeal, it may end the legal battle between Ripple Labs and the regulatory body that has lasted for more than four years.
Related topics: A U.S. judge denies a joint request from Ripple and the SEC to reduce a $125 million civil penalty.
In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs and Chris Larsen and CEO Brad Garlinghouse.
The main allegation of the U.S. Securities and Exchange Commission (SEC) was that Ripple raised $1.3 billion by selling XRP as an unregistered security, thus violating federal securities laws.
In August 2024, Garlinghouse argued that Torres' decision to fine Ripple Labs $125 million was a "victory" for the company, noting that it represents a 94% reduction from the SEC's initial plan to fine Ripple $2 billion in damages.