Ripple Labs Inc. (XRP) Updates Its Cross-Appeal in the U.S. Securities and Exchange Commission (SEC) Lawsuit

The company has withdrawn its cross-appeal, leading to speculation that the SEC might ask the court to lift the injunction preventing Ripple from selling XRP

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing its final stage as the company has pulled out of its cross-appeal.

This move has led to speculation that the SEC might ask the court to lift the injunction that had prevented Ripple from selling its cryptocurrency, XRP, directly to institutional investors.

If this happens, could Ripple restart these sales? Legal experts share their views.

After the apex court ruled in favor of crypto exchange Coinbase in its case with the SEC, many are wondering if this signals the impending resolution of Ripple’s legal battle with the agency.

Recently, the company announced that it is withdrawing from its cross-appeal, marking a significant step in the ongoing saga.

The SEC's lawsuit had placed substantial restrictions on Ripple's operations, notably prohibiting the direct sale of XRP to institutional investors.

The legal clash began in 2020 when the SEC accused Ripple of selling XRP without proper registration. Last year, Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled that Ripple's institutional sales were an unregistered securities offering. However, she clarified that XRP sales on public exchanges did not fall into the same category.

The agency is yet to disclose whether it will request the court to remove the injunction.

If the court removes the injunction at the SEC's request, Rispoli says that this would allow Ripple to begin selling XRP to institutional investors again.

However, he adds that the company's actions must still comply with securities laws.

"Note that this would still require Ripple’s institutional XRP sales to conform to securities law but they can now sell to say, hedge funds or private equity firms directly instead of to OTC desks first," Rispoli explains.

Meanwhile, crypto lawyer Bill Morgan highlights that the court's original ruling remains unchanged despite Ripple dropping its cross-appeal.

He says on X: "Some reporting is muddled. The District Court’s judgment remains in place. It ruled that Node One, LLC’s sales of XRP were securities and subject to registration requirements, while sales of XRP on public exchanges were not."

As the legal battle winds down, the XRP community is buzzing with anticipation.

While some are optimistic that this signals a step closer to seeing XRP used in new projects, others remain uncertain.

Currently, XRP is trading at $2.47, reflecting a 6.6% increase over the past week and a 280.2% surge in the past year. At the start of this month, XRP was priced at $2.14602, meaning it has risen nearly 14.98% since then. However, it is still 18.73% below this month’s peak.