Ripple Withdraws Cross-Appeal – What’s Next for XRP?

Ripple’s legal battle against the US Securities and Exchange Commission has reached its final stage, as the cryptocurrency company has withdrawn its cross-appeal in the SEC case. There are rumours that the SEC will request the court to lift the injunction, which restricts the company from selling XRP tokens directly to institutional players. Ripple enthusiasts believe that if the injunction is lifted, the company will restart its institutional sales. Could Ripple resume selling XRP to hedge funds and private investors directly? Experts weigh in on what this development means for Ripple, the SEC and the broader crypto market. Read on!

Ripple Withdraws Its Cross-Appeal 

Since the SEC legal battle against Coinbase was settled, there have been speculations that the legal battle between the SEC and Ripple might also be settled soon. 

Ripple CEO Brad Garlinghouse’s announcement about his company’s decision to withdraw its cross-appeal in the ongoing case between the company and the SEC confirms that the legal battle has reached its final stage.  

The injunction, secured by the SEC against Ripple, has affected the crypto company severely. It restricts the company from selling XRP tokens to institutional players directly. 

The SEC-Ripple Legal Battle: The Background Explained 

It was in 2020 that the legal battle between Ripple and the SEC commenced. The main accusation against Ripple from the US regulator was that the crypto company sold XRP without proper authorisation.  

In the US District Court in the Southern District of New York, Judge Analisa Torres ruled that Ripple’s institutional sales constituted an unregistered securities offering but determined that programmable sales did not fall under the same category. 

What Ripple’s Withdrawal of the Appeal Means for XRP 

The SEC has not yet made an official statement on whether it will request the court to withdraw the injunction against Ripple.

Fred Rispoli opines that if the injunction is removed by the court at the behest of the SEC, Ripple can resume its institutional sales.

Meanwhile, he emphasises that Ripple must revamp its institutional sales strategy even if the injunction is cancelled. 

He says: “Ripple’s institutional XRP sales still must conform to securities law but can now sell to say, hedge funds or private equity firms directly instead of to OTC desks first.”

An X post by Bill Morgan notes: “the court finding has not been reversed on the cross appeal which is now not being pursued.”

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Uncertainty in the XRP Community and Market 

Although the XRP community has welcomed Ripple’s decision to withdraw the cross-appeal, many XRP enthusiasts are unsure about how the development will influence the future of XRP. 

The XRP price stands at $2.47. In the last seven days, the XRP market has seen a growth of 6.6%. In the last one year, the market has surged by over 280.2%. 

At the start of this month, the price of XRP was around $2.14602. Currently, the price stands nearly 14.98% above where it was at the beginning of the month. Meanwhile, the price remains at least 18.73% below the peak of the month.

In conclusion, Ripple’s withdrawal of its cross-appeal marks a crucial moment in its legal battle with the SEC. While the lifting of the injunction could allow the company to resume institutional sales, compliance with securities laws remains necessary. The XRP community remains divided, with some optimistic about growth and others cautious about regulatory uncertainty. As Ripple navigates this legal shift, its future market strategy and SEC decision will determine XRP’s long-term trajectory.  

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