The Securities and Exchange Commission, SEC has announced the end of its long-standing battle with Ripple. In a recent update shared on his official X page, SEC Chairman Paul Atkins acknowledged this significant development.
In the X post, Atkins pointed out that with the conclusion of Ripple case, the SEC can now redirect its efforts from the courtroom to the policy drafting table. He added that the regulatory agency should focus on establishing a clear framework that fosters innovation while ensuring investors protection.
Both parties decided to drop their appeals regarding the fine issued by U.S. District Judge Analisa Torres in Manhattan and her injunction on Ripple’s sale of XRP tokens to institutional investors. However, it is worth noting that the $125 million fine imposed on Ripple still stands.
Ripple and the SEC legal tussle in 2020
Recall that the legal tussle between the SEC and Ripple all began on December 22nd, 2020 when the Securities and Exchange Commission filed a lawsuit against Ripple Labs. The company, its CEO Brad Garlinghouse, and Co-founder Chris Larsen were pulled into the lawsuit, as the SEC accused them of selling unregistered securities. It accused Ripple of selling XRP tokens without registering them as securities.
In 2021, Ripple proactively responded by filing a motion to dismiss the lawsuit. The court initially ruled in January 2022 that XRP sales constituted a security transaction. However, in the same year, in April, Judge Analisa Torres in Manhattan ruled that these sales do not qualify as securities offerings, marking a significant shift in the legal landscape surrounding XRP.
It’s worth noting that despite the long-standing battle with the SEC, Ripple has been unrelenting in its effort to ensure global expansion of XRP token. In July, Ripple partnered with OpenPayd to redefine global crypto payment infrastructure. It partnered with HashKey Capital in April to launch the HashKey XRP Tracker fund.
It also invested $25 Million in leading education non-profit organizations, DonorsChoose and Teach For America to equip young Americans and educators with the resources needed to improve academic outcomes.
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