Ripple Labs has announced it will drop its cross-appeal in its lengthy legal battle with the SEC, concluding a nearly five-year dispute. CEO Brad Garlinghouse revealed the decision following a New York judge's rejection of a settlement proposal that aimed to reduce Ripple's civil penalty to $50 million and remove the injunction against the company. Instead, Ripple will accept the original penalty of $125 million and the injunction is likely to remain. Judge Analisa Torres highlighted concerns about eliminating the injunction, emphasizing the probability of Ripple continuing to violate federal securities laws. The SEC first sued Ripple in December 2020 for alleged violations linked to the sales of XRP, claiming it constituted unregistered securities transactions. A 2023 ruling found that while sales to retail traders were not securities transactions, those to institutional investors were, resulting in violations. After the conclusion of the cross-appeal, Ripple expressed a desire to refocus on its mission of building the Internet of Value.

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