- SEC has hinted at a retreat in the Ripple XRP battle.
- Tensions have risen as the SEC reverses on “crypto securities” in the Binance case.
- XRP has surged amid legal triumphs and brewing ETF speculation.
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) is signaling that it will likely not appeal Judge Analisa Torres’ ruling in the high-profile XRP lawsuit involving Ripple Labs . This decision comes as Ripple received a stay order on a $125 million payment.
CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty expressed optimism that the legal battle with the SEC may finally be nearing an end. The SEC has taken steps to amend its approach in the ongoing Binance lawsuit, particularly by walking back its use of the term “crypto asset securities.”
SEC Shifts Focus: XRP Case Takes a New Turn
The agency, which previously argued that certain tokens like Solana (SOL) , Cardano (ADA) , and Polygon (POL, formerly MATIC) are securities, will continue to pursue this claim in secondary markets, where it believes these assets are still being offered and sold as investment contracts.
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Despite this, the SEC’s actions indicate that it is backing away from challenging Judge Torres’ summary judgment on XRP’s programmatic sales. In her ruling, Judge Torres made a distinction between programmatic sales of XRP and secondary market transactions, suggesting that programmatic buyers are akin to secondary market purchasers.
She did not explicitly rule on the legality of secondary market sales, leaving some ambiguity that has yet to be resolved. Still, Ripple’s leadership views the lack of appeal from the SEC as a strong indication that the case is essentially concluded in their favor.
Grayscale XRP Trust and CME XRP Index Drive Interest
Garlinghouse and Alderoty have confirmed that Ripple is not planning to appeal the ruling, though they remain open to cross-appealing if necessary. They believe that if the SEC continues to press the case in higher courts, it risks setting a binding precedent that could affect future enforcement actions.
Alderoty also pointed out that Ripple’s victory leaves the “fair notice” defense intact for others facing similar litigation from the SEC. As Ripple gains regulatory clarity in the U.S. and abroad, XRP’s role in the broader financial system is expanding.
The emergence of products like the Grayscale XRP Trust and CME’s XRP Index further underscores this integration, and there is growing speculation that an XRP-based exchange-traded fund (ETF) could be on the horizon.
Following these developments, the price of XRP has surged by over 10.5% in the past week , with the cryptocurrency trading at approximately $0.5831. Despite a 42% dip in trading volume, the market continues to react positively to Ripple’s legal progress and the broader implications for the crypto industry.
On the Flipside
- The SEC may avoid a higher court ruling to retain its power to regulate other cryptocurrencies, keeping regulatory challenges alive for the crypto industry.
- Ripple’s win doesn’t stop the SEC from targeting other tokens, meaning the broader market is still under scrutiny.
- The potential XRP-based ETF could face regulatory hurdles, and its approval remains uncertain, affecting investor optimism.
Why This Matters
The SEC’s decision not to appeal the Ripple XRP ruling marks a pivotal moment for U.S. crypto regulation. It potentially sets a legal precedent that could reshape digital asset classification and boost institutional adoption. This development signals a transformative shift that may impact future enforcement actions and the overall crypto market trajectory.
To learn more about the recent surge in XRP’s price and its connection to the SEC lawsuit, read here:
Ripple Slams SEC’s Crypto U-Turn: Can XRP Finally Break Free?
Is XRP on the verge of a breakout? Dive deeper into the factors that could influence XRP’s price in this article:
XRP’s Make or Break Moment: Could a Rally Be Around the Corner?
