Ripple drops its cross-appeal against the SEC, signaling a potential end to the long-standing legal battle and a renewed focus on building the 'Internet of Value.'

XRP, Ripple, and the SEC: Cross-Appeal Dropped – What's Next?

After years of legal wrangling, Ripple and the SEC might finally be nearing the end of their battle. Ripple CEO Brad Garlinghouse announced the company is dropping its cross-appeal, with expectations the SEC will follow suit.

Ripple Pulls Back: Focusing on the Future

Garlinghouse took to X to declare, "Ripple is dropping our cross-appeal, and the SEC is expected to drop their appeal, as they’ve previously said. We’re closing this chapter once and for all, and focusing on what’s most important – building the Internet of Value. Lock in." This signals a significant shift in strategy for Ripple, moving away from legal battles and towards development and innovation.

The Backstory: A Contentious Legal Fight

The SEC initially sued Ripple in December 2020, alleging that the company raised $1.3 billion through unregistered XRP sales, violating federal securities laws. While a 2023 ruling offered some clarity, determining that XRP sales to retail traders weren't securities transactions but sales to institutional investors were, the legal saga continued. The court denied a joint motion from the SEC and Ripple to reduce a $125 million civil penalty and reverse an order defining primary sales of XRP to institutional investors.

XRP's Price Reaction and Market Sentiment

Following Garlinghouse's announcement, XRP experienced a modest price jump. Despite initial bearish reactions to news of stalled settlements, social media sentiment surrounding XRP has shown surprising resilience, even turning bullish at times. This suggests a level of confidence among retail investors, perhaps fueled by the hope of a resolution and Ripple's continued efforts.

Why Drop the Cross-Appeal?

Judge Torres's pointed questions about Ripple's commitment to following the law likely played a role in the decision to drop the cross-appeal. Accepting the $125 million penalty and the permanent injunction against the firm seems to be a strategic move to bring closure to the case.

The Broader Implications

If the SEC also drops its appeal, it could finally end the legal uncertainty surrounding XRP, potentially paving the way for wider adoption and integration within the financial system. For years, the SEC case has acted as a wet blanket on XRP. This resolution will give Ripple the ability to focus on building without having to look over its shoulder.

So, What's Next?

With the legal clouds potentially clearing, Ripple can fully dedicate its resources to developing its technology and expanding its reach. Whether XRP becomes the backbone of the “Internet of Value” remains to be seen, but one thing's for sure: the future looks a whole lot brighter without the SEC looming overhead. Now, if you'll excuse me, I'm going to go check my XRP holdings... just in case!