As Ripple Labs, the issuer of cryptocurrency XRP, officially withdraws its appeal against the U.S. Securities and Exchange Commission (SEC), and the SEC is expected to take similar action, the market anticipates a positive impact on XRP prices.
With the three-and-a-half-year legal battle effectively coming to an end, XRP has successfully stabilized around the 3,000 won level with a short-term rebound. The industry is once again expecting increased possibilities of entering the institutional market.
Brad Garlinghouse, Ripple's CEO, stated on X (formerly Twitter), "Ripple has withdrawn its appeal and expects the SEC to withdraw soon" and "We will completely close the current chapter and focus on building the 'Internet of Value'."
This announcement came immediately after Judge Analisa Torres of the New York Southern District Court officially rejected the SEC's request for fine reduction and permanent injunction removal on the 26th, effectively putting an end to the lawsuit between Ripple and the SEC that began in December 2020.
In July 2023, the court ruled that "public market trading of XRP does not constitute securities" and that "securities law violations only apply to large-scale sales to institutions." This court decision essentially worked as a strategic victory for Ripple.
However, the SEC subsequently attempted legal action by demanding fine reduction and injunction removal, to which Ripple responded with a counter-appeal. But with Judge Torres's decisive rejection, all procedures have entered the final stage.
Immediately after Ripple's appeal withdrawal announcement, XRP surged 3.36% to reach $2.18, and on June 28th, it further rose about 2%, maintaining the $2.18-$2.19 range. Investment sentiment on exchanges and on-chain is also showing signs of recovery.
Experts analyzed that this decision could increase the possibility of entering the institutional market, especially for spot ETF approval. Nate Geraci from ETFStore said, "The end of the legal battle with the SEC will create a very favorable environment for XRP ETF approval review" and "It is now time to be re-evaluated as a major digital asset without regulatory risks."
