XRP rallied over 3% on Friday after Ripple Labs CEO Brad Garlinghouse announced the company is dropping its cross-appeal against the U.S. Securities and Exchange Commission (SEC), signaling a potential resolution to their prolonged legal battle.
Key Developments
- Price Rally: XRP jumped 3.36% to $2.18 following Garlinghouse's announcement.
- Legal Clarity: Ripple's legal team confirmed XRP's non-security status remains intact, easing market concerns.
- Institutional Focus: Ripple shifts attention to building the "Internet of Value" post-litigation.
Garlinghouse stated on X:
"Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they've previously said."
Court Upholds $125M Penalty
A U.S. district court recently denied Ripple and the SEC's joint request to:
- Reduce the $125 million civil penalty
- Reverse the classification of institutional XRP sales as securities transactions
Judge Analisa Torres noted Ripple's tendency to "push boundaries" indicated potential future violations. Despite this, Ripple's Chief Legal Officer Stuart Alderoty emphasized:
"XRP's legal status as not a security remains unchanged."
Case Background
- Filed: December 2020
- Allegations: $1.3B raised through unregistered XRP sales
- 2023 Ruling: Programmatic sales weren't securities, but institutional sales were
👉 Explore how legal clarity impacts crypto markets
XRP Ledger Upgrades Boost Functionality
RippleX released XRP Ledger v2.5.0, introducing protocol enhancements:
| Upgrade | Key Feature | Impact |
|---|---|---|
| XLS-85 | Supports third-party tokens (e.g., stablecoins) | Expands institutional use cases |
| XLS-56 | Combines multi-step transactions | Reduces failure rates by 30%+ |
The network has seen a 743% surge in daily active addresses, now averaging 295,000.
Market Implications
With the SEC dispute nearing resolution:
- Regulatory Clarity: Could spur institutional adoption of XRP
- Technical Advancements: Upgrade positions XRPL for DeFi and enterprise applications
- Investor Confidence: Sustained price stability likely as uncertainty fades
👉 Learn about institutional crypto adoption trends
FAQs
Q: Will XRP's price continue rising post-SEC resolution?
A: While legal clarity is positive, market conditions and adoption rates remain key drivers.
Q: How do the XRPL upgrades benefit developers?
A: Enhanced token management and transaction efficiency enable more complex dApps.
Q: Is Ripple completely cleared of SEC allegations?
A: The $125M penalty stands, but the core classification of XRP as non-security is preserved.