Ripple Labs says US SEC ends appeal over crypto oversight

[NEW YORK] Ripple Labs said on Wednesday (Mar 19) the US Securities and Exchange Commission (SEC) ended its appeal from a court ruling that the regulator’s prior chief had said would make it harder to oversee cryptocurrency markets.

The SEC had been appealing a July 2023 decision by US District judge Analisa Torres in Manhattan that the XRP token sold by Ripple on public exchanges did not meet the legal definition of a security.

Torres also gave the SEC a partial victory against Ripple, saying US$728 million of XRP sales to institutional investors should have complied with securities laws.

She fined Ripple US$125 million last August, but put the fine on hold while Ripple appealed to the 2nd US Circuit Court of Appeals in Manhattan. That appeal remains pending.

In a post on X, Ripple chief executive Brad Garlinghouse called the end of the SEC appeal a “resounding victory” and “long overdue surrender” by the regulator.

Ripple chief legal officer Stuart Alderoty posted separately that “Ripple is now in the driver’s seat and we will evaluate how best to pursue our cross appeal. Regardless, today is a day to celebrate”.

The SEC declined to comment.

Since US President Donald Trump began his second White House term in January, the SEC has retreated on crypto oversight.

It ended civil lawsuits against crypto exchanges Coinbase and Kraken, and said it may resolve its civil fraud case against Chinese entrepreneur Justin Sun, an adviser to a Trump-backed crypto project.

SEE ALSO

SEC appeals US$125 million judgment in Ripple Labs XRP lawsuit

Trump, meanwhile, nominated Paul Atkins, a Washington lawyer seen as supportive of the crypto industry, to become SEC chair.

Atkins would replace Gary Gensler, who many in that industry reviled.

The SEC lawsuit accusing Ripple of offering unregistered securities began in December 2020, four weeks before Trump ended his first White House term. REUTERS