Ripple and the SEC have been engaged in a legal dispute for years, and despite joint attempts to end the battle, it is still not over.
In 2020, the SEC charged Ripple and two executives with conducting an unregistered securities offering worth $1.3 billion in its sales of $XRP
In 2023, a judge largely ruled in favor of Ripple, marking a point of optimism for regulatory battles in the cryptocurrency industry.
However, the SEC later appealed this ruling, followed by a counter-appeal from #شركة_ريبل .
Since the election of President Donald Trump and the appointment of cryptocurrency-friendly regulatory bodies, both parties have been working towards a resolution. However, legal challenges have prevented both sides from putting an end to the protracted battle, although it seems that an appropriate conclusion may finally be near.
Here’s a look at the recent twists and turns.
Ripple's president says, "The case is over" - March 19
In mid-March, Brad Garlinghouse, the CEO of Ripple, shocked the cryptocurrency world by announcing that the Securities and Exchange Commission would drop its long-standing lawsuit against the company.
"This is the moment we have been waiting for. The SEC will drop its appeal - a resounding victory for Ripple, and for cryptocurrencies, in every respect," Garlinghouse posted on X.
This news led to a 14% rise in $XRP , adding to the pile of investigations and lawsuits that the regulatory body retreated from during President Donald Trump's administration.
Ripple's penalty reduced to $50 million - March 25
Despite an initial order to pay a fine of $125 million, Ripple Labs stated in March that the SEC agreed to pay only $50 million to settle the dispute, with the additional $75 million amount being returned to Ripple Labs after being placed in escrow.
Stuart Alderoty, Ripple's Chief Legal Officer, posted on X: "The SEC will retain $50 million of the $125 million fine (already deposited in an interest-bearing escrow account), with the balance being returned to Ripple."
Additionally, Alderoty noted that Ripple agreed to drop its reciprocal appeal, following the SEC's decision the previous week.
Ripple and the SEC file a request to suspend appeals - April 10
After reaching a preliminary agreement in March, both parties submitted their requests to suspend their appeals in April.
This represents the first official confirmation of the regulatory body's intention to drop its appeal, although the request indicated that it was still subject to the approval of the commissioners of the SEC.
The request states that "the parties need additional time to obtain the agency’s approval of this preliminary agreement, and if approved, to request a declaratory judgment from the district court."
Commissioner Krenshaw criticizes the deal - May 8
Nearly a month after filing the request, Caroline Krenshaw, a commissioner of the SEC, publicly condemned her agency's settlement with Ripple Labs, stating that it undermines the court's order and the agency's executive proceedings.
Krenshaw stated: "This settlement, along with the dismantling of the SEC's cryptocurrency enforcement program, severely harms the investing public and undermines the court's role in interpreting our securities laws."
Krenshaw added that the settlement was not in the best interest of investors and markets.
The judge rejected the settlement - May 16
A week after Krenshaw's statement, a federal judge rejected the joint proposal from Ripple and the SEC to approve a settlement, which would have required the former to pay only $50 million of its original $125 million fine.
The judge cited procedural errors in the filings that led to the decision, as the couple bypassed a rule governing exemptions from final judgments.
Alderoty posted after the judge's order: "Nothing in today’s order changes Ripple’s victories." "Ripple and the SEC are in complete agreement on resolving this matter, and they will revisit this issue with the court together."
Nothing in today’s order changes Ripple’s victories (i.e., that #XRP is not a security, etc.). It concerns procedural concerns regarding the rejection of the mutual appeal filed by Ripple. Ripple and the SEC are in complete agreement on resolving this matter, and they will revisit this issue with the court together.
Ripple and the SEC request the court to vacate the injunction - June 13
Almost a month after procedural issues hindered the approval of the settlement, both parties asked the court to vacate the injunction against Ripple and release $125 million of the funds deposited in the escrow account from the original fine.
This was the second time both parties sought to end the ongoing dispute since 2020, but like previous attempts, it required Judge Torres's approval, which she had previously denied.
Again rejected, and the $125 million fine remains - June 26
Despite the second attempt to jointly end the long legal battle between the SEC and Ripple, Judge Analisa Torres denied both parties once again last Thursday.
Torres cited a "compelling case" from the SEC that had accumulated over four years and found the recent arguments seeking a resolution inadequate. Therefore, the judge denied the reduction of the $125 million amount or the dismissal of the injunction, as requested.
Alderoty wrote: "With this, the ball is back in our court. The court gave us two options: reject our appeal that challenged the historic institutional sales ruling, or proceed with the appeal. Stay tuned. In either case, the legal status of $XRP as a non-security remains unchanged. Meanwhile, things are proceeding as usual."
Ripple announces it will drop the appeal - June 27
After the court's latest rejection, Garlinghouse stated late Friday that Ripple decided to drop its reciprocal appeal, and with the SEC previously announcing it would drop its own appeal on the 2023 ruling, this is expected to finally conclude the case.
Garlinghouse wrote on X: "Ripple dropped its appeal, and the SEC is expected to withdraw its appeal, as previously announced. We are closing the book on this matter once and for all and focusing on what matters most - building the value network. We will solidify our footing."
Assuming everything goes as planned, this is supposed to finally conclude the long saga of XRP. Stay tuned for the files that will settle the matter. #RippleSECSettlement #Ripple