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SEC and Ripple Reach Major Settlement, Ending Long Legal Struggle

Ripple Labs has officially dropped its cross-appeal in its contentious lawsuit with the U.S. Securities and Exchange Commission (SEC), marking a significant shift in the protracted legal dispute over the classification of its XRP tokens.

CEO Brad Garlinghouse announced this pivotal decision, indicating that both Ripple and the SEC are likely to withdraw their respective appeals.

This lawsuit had seen Ripple accused of violating securities laws concerning its XRP token sales, with a judge recently determining that public sales of XRP were not classified as securities.

Despite attempts to negotiate a settlement that would lower Ripple's civil penalty to $50 million, the judge rejected the proposal, affirming a penalty of $125 million and upholding a permanent injunction against the company.

By choosing to abandon its appeal, Ripple is prepared to accept these penalties, allowing the firm to redirect its focus on developing the vision of the "Internet of Value."

The news led to a modest increase in XRP’s price, as investors reacted positively to the sign of resolution.

Market participants are awaiting the SEC's formal decision to drop its appeal, which would fully conclude the legal battles surrounding Ripple.

This resolution is seen as a landmark moment, potentially shaping future regulatory frameworks for cryptocurrencies in the U.S.

Moving ahead, Ripple plans to utilize this newfound legal clarity to enhance its growth and innovation within the digital asset space.

Overall, this development signals a new chapter for Ripple and the broader crypto market, as it aims to build upon the lessons learned from this legal journey.