U.S. SEC Drops Appeal in Ripple Labs Case, Ending a Four-Year Legal Battle

The U.S. SEC has officially dropped its appeal in the ongoing legal case with Ripple, bringing an end to a four-year legal battle. However, the SEC has yet to confirm the latest developments.

The U.S. Securities and Exchange Commission (SEC) has dropped its appeal in the ongoing legal case with Ripple, bringing an end to a four-year legal battle. However, the SEC has yet to confirm the latest developments.

There’s been a lot of talk about what will happen to XRP once the SEC clears the legal issues. Some experts think that when the SEC removes the injunction, Ripple will be able to sell XRP to institutional investors without any problems.

However, Marc Fagel, a former SEC lawyer, explained why that’s not exactly true.

Fagel: Even If SEC Clears Injunction, Issues Remain

Fagel pointed out that even if the SEC clears the injunction, the court’s original ruling still stands. The court had previously ruled that Ripple’s sales of XRP to institutional investors were against the law.

This means that selling XRP in the same way as before would still be illegal, even if the SEC removes the injunction.

He explained that the issue is not just about specific contracts or agreements, but about how Ripple sold XRP to institutional investors. The court found that the way these sales were made made XRP an unregistered security.

Room For Legal Flexibility

However, Fagel mentioned that not all sales to institutional investors would require registration. Some sales might be allowed under special exemptions. It all depends on the details of the transactions and whether they are similar to the ones that were previously found illegal.

But Fagel also pointed out that the SEC has been less focused on regulating the crypto market recently. This means that Ripple might not face strict consequences for its future sales of XRP, even if they are similar to previous ones.

What’s Next For Ripple And XRP?

As for Ripple, Fagel said the company’s legal team will need to carefully consider any future sales. If they follow the same pattern as the past sales, they could face legal issues.

But since the SEC is less involved in crypto regulation now, Ripple may be able to move forward with fewer legal concerns.

Will Judge Torres Clarify The Ruling?

Some people asked if Judge Torres would provide more clarity on the past XRP sales to institutional investors.

Fagel believes she probably won’t. The judge has already made her decision, and Ripple is likely to request that she remove the injunction entirely.

The attorney thinks there’s little chance that the judge will change her ruling, as she was previously reluctant to make it more specific.