The US Securities and Exchange Commission's lawsuit against Ripple Labs, initiated in 2020, has officially concluded. This follows a joint stipulation by both parties to dismiss their respective appeals of a 2023 court ruling, with each party bearing its own costs. The legal dispute began when the SEC, under the leadership of former Chair Jay Clayton, alleged that Ripple had breached securities laws by selling XRP, a token closely linked to the company.
A district judge's 2023 ruling found Ripple guilty of violating securities laws when selling XRP to institutional investors, resulting in a $125 million fine and a permanent injunction. Although Ripple and the SEC filed appeals, they have now agreed to drop these appeals, leaving the penalties in place. The news led to a 5% surge in XRP's value, which was trading at around $3.27.
The resolution of this case marks the end of a long-standing legal battle between Ripple and the SEC, which had been ongoing since 2020.