en.cryptonomist.ch
The Securities and Exchange Commission (SEC) has decided to withdraw its appeal in the case against Ripple, marking a crucial turning point in the long legal dispute.
According to the cryptocurrency expert lawyer John Deaton, this move represents the definitive confirmation that XRP tokens must be considered digital assets and not financial securities.
Summary
The importance of Ripple’s (XRP) cross-appeal in the legal case
The announcement by the SEC not to proceed with the appeal marks a significant victory for Ripple, which has been facing legal charges for years.
Despite this decision, a court order remains pending that requires the company to pay 125 million dollars for the alleged improper sale of XRP. However, with the SEC’s appeal filed, Ripple could negotiate a settlement to reduce the amount of the fine.
Deaton, known for representing XRP investors in the legal battle against the SEC, believes that Ripple now has an advantage in the negotiations.
“Everything has changed,” stated the lawyer, emphasizing how the cryptocurrency industry has undergone a significant transformation and the SEC has changed its approach towards the sector.
One of the key aspects in this matter is the cross-appeal filed by Ripple in October 2024.
According to Deaton, the SEC wishes to avoid a ruling on this appeal, as it could limit the jurisdiction of the commission and influence other ongoing disputes.
This gives Ripple an important negotiating leverage to review the amount of the fine or obtain more favorable conditions.
Despite the legal victory, Ripple still finds itself facing an injunction issued by Judge Analisa Torres. This decision prevents the company from selling XRP to institutional investors, to avoid potential violations of securities laws.
Deaton emphasizes that the main difficulty for Ripple now is overcoming this restriction and being able to provide XRP directly to U.S. banks. This obstacle could become a crucial point in the upcoming developments of the legal case.
“`html
Ripple remains a U.S. company
“`
An important aspect, according to Deaton, is that Ripple has never left the United States despite the lawsuit filed by the SEC.
The CEO of Ripple, Brad Garlinghouse, might emphasize the American character of the company in an attempt to strengthen the company’s position.
“We have faced legal action from the United States government and the Biden administration, but we are a company born in America and we have never left it,” Garlinghouse reportedly said.
This element could play a key role in future negotiations with the regulatory authorities.
Deaton recalls the moment when the SEC initiated the case against Ripple, describing it as an attack on the cryptocurrency sector. In his view, it was not just an isolated issue against Ripple, but a broader signal directed at the entire crypto ecosystem.
The lawyer also referred to the regulatory crackdown promoted by figures such as Elizabeth Warren and Gary Gensler, considering it to be a broader strategy by the traditional financial industry to curb the development of cryptocurrencies.
Conclusion
The decision of the SEC to withdraw the appeal against Ripple marks a significant turning point for the company and the entire cryptocurrency sector.
Although the issue of the $125 million fine and the injunction on the sale of XRP to banks still needs to be resolved, this victory strengthens Ripple’s position as one of the leading companies in the crypto world.
With the new dynamics at play, the future of XRP appears more promising, and the SEC’s decision could set a fundamental precedent for other legal disputes in the sector.