The long-running legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. has reached a formal conclusion, solidifying the key findings of a previous court ruling.
The settlement brings definitive closure to the litigation concerning the regulatory status of XRP sales. This resolution finalizes the court’s 2023 ruling which established distinct classifications for different sales methods.
Market reaction to the settlement was immediately positive, with the price of XRP surging over 10% following the announcement.
The finalized ruling maintains the court’s original determination. Institutional sales of XRP were classified as securities transactions and therefore require registration. Conversely, sales of XRP on public cryptocurrency exchanges were deemed not to constitute securities offerings.
As part of the resolution, Ripple must now adhere to regulatory requirements concerning the offering and sale of XRP to institutional investors, which may influence its future market strategy.
The conclusion of this high-profile case marks a significant milestone for the cryptocurrency industry, providing greater regulatory clarity surrounding digital asset sales, particularly impacting XRP and its market operations.