SEC and Ripple Seek Dismissal of XRP Appeal, Awaiting Court Approval
The US Securities and Exchange Commission and Ripple Labs have filed a joint stipulation to dismiss their appeals in the ongoing XRP legal case. The status report, submitted to the Court of Appeals, confirms both parties are awaiting court approval to formally close the XRP appeals process. This follows a July request to hold proceedings in abeyance while settlement terms were finalized, including a proposed reallocation of Ripple’s $125 million penalty ($50 million to the SEC and $75 million back to Ripple), which was rejected by Judge Analisa Torres. Once the dismissal is granted, the case will move to enforcement: Ripple must satisfy the $125 million penalty and comply with existing injunction terms. Under Judge Torres’ ruling, XRP remains not classified as a security in secondary trading, although certain institutional sales are still subject to securities laws.
Neutral
Categorized as neutral because the joint stipulation to dismiss XRP appeals removes a legal overhang without altering the case’s core outcome. While the enforcement phase requires Ripple to pay the $125 million penalty, the key ruling—that XRP is not a security in secondary trading—remains intact. Similar to past settlements (e.g., SEC vs. Telegram, SEC vs. Kik), finalizing appeals often stabilizes market sentiment by eliminating regulatory uncertainty but does not directly drive price movements. In the short term, traders may see muted volatility as the market digests the enforcement details. Over the long term, the case’s closure could foster greater institutional confidence, encouraging further XRP adoption if no new legal challenges arise. Overall, this update provides clarity but lacks immediate bullish or bearish catalysts.