Can dropping the SEC cross-appeal finally end Ripple’s legal saga and boost XRP’s market value

Ripple Labs’ CEO Brad Garlinghouse announced the company’s decision to drop its cross-appeal against the US Securities and Exchange Commission (SEC), signaling a possible end to a legal dispute that has lasted since December 2020.

This move, expected to be reciprocated by the SEC, represents a major turnaround that could bring regulatory clarity and stability to XRP’s market status.

The legal battle has weighed heavily on XRP’s price and adoption, with uncertainty deterring institutional and retail investors alike. Closing this chapter allows Ripple to focus on innovation and expanding its ecosystem without the overhang of litigation.

Immediate market reaction and price implications

Following Garlinghouse’s announcement, XRP’s price surged over 3%, rising to $2.18 within hours. This spike reflects renewed investor optimism, as the market interprets the legal development as a positive signal for XRP’s future.

Despite a 4.44% decline over the past 30 days, this price movement suggests that resolving regulatory disputes can significantly influence market sentiment and asset valuation in the crypto space.

Did you know?
XRP was one of the earliest cryptocurrencies designed specifically to facilitate fast and low-cost cross-border payments, aiming to revolutionize traditional remittance systems.

Regulatory clarity and its impact on adoption

The SEC lawsuit centered on allegations that Ripple’s sale of XRP constituted unregistered securities offerings, a claim Ripple has consistently contested.

The potential resolution of this dispute may set a precedent for how cryptocurrencies are classified under US law, providing much-needed clarity for the industry.

Such clarity could facilitate broader adoption of XRP in payments and financial services, as regulatory uncertainty has been a major barrier for partnerships and institutional use cases.

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Ripple’s strategic focus post-litigation

With legal distractions minimized, Ripple plans to concentrate on building the “internet of value,” emphasizing cross-border payments and blockchain innovation.

Garlinghouse’s statement underscores a renewed commitment to operational growth and product development.

This strategic pivot could accelerate XRP’s integration into global financial systems, enhancing its utility and long-term value proposition.

Remaining challenges and market outlook

While dropping the cross-appeal is a decisive step, Ripple’s legal status remains complex, as recent court rulings have upheld certain penalties and regulatory findings.

Ripple’s chief legal officer, Stuart Alderoty, noted that XRP’s classification as not a security remains unchanged, but the path ahead requires careful navigation.

Investors should remain mindful of potential regulatory shifts and market volatility, even as the company moves toward normalization and growth.