On August 8, the XRP community was on Cloud Nine after a major update appeared in the long-term Ripple vs sec case. It was announced that both parties, Ripple Labs and the US Securities and Exchange Commission, had submitted a joint dismissal of appeal, which effectively means that the case was over.
This news meant the end of more than five years of legal fighting, with many expected strong reactions from Ripple’s leadership. However, some thought it was unusual that Ripple CEO Brad Garlinghouse stopped for more than 24 hours after the news turned out.
Confusion and doubts among XRP holders
While some celebrated the announcement, others in the XRP community wondered if the case was really over. A few users of social media even called it ‘fake news’, point to the SEC website and claimed that nothing had been officially confirmed.
Others said that this could be a “distraction” and say that both parties had not yet issued formal public statements. This uncertainty fed confusion and even FUD (fear, uncertainty and doubt) among investors.
Ripple Clo Stuart Alderoty, however, noted and said: “After the committee’s vote today, the SEC and Ripple formally submitted directly to the second circuit to reject their profession. The end … and now back to the business world.”
Former sec lawyer knew the air
Former sec lawyer Marc Fagel came in to clarify the situation. “The joint determination of dismissal is public, so it is not sure what you think should be announced,” he said.
Fagel explained that Judge Analisa Torres, who supervised the case, has nothing to do with this stage. As soon as the Court of Appeal has completed the administrative process of rejecting the appeal, its original ruling against the SEC automatically comes into effect.
“No judges have to weigh anything on this point,” Fagel stated, and emphasized that the case is effectively over.
What is the next step for Ripple and XRP?
Rejected with the professions, Ripple is free of the “Bad Actor” label, possibly open doors for fundraising and further business expansion. Still, until an official statement comes directly from Ripple or the SEC, parts of the community can remain skeptical.