In a significant development for the cryptocurrency industry, Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) has decided to withdraw its appeal in the ongoing case against Ripple Labs. This decision effectively concludes a legal battle that has spanned over four years, marking a pivotal moment for both Ripple and the broader crypto market.
The SEC’s lawsuit, initiated in December 2020, accused Ripple of conducting an unregistered securities offering through the sale of its native token, XRP. In a landmark ruling in July 2023, U.S. District Judge Analisa Torres determined that XRP was not a security when sold on public exchanges but classified institutional sales differently, leading to a proposed $125 million fine for Ripple.
Garlinghouse celebrated the SEC’s decision to drop the appeal as a victory for the entire crypto industry, emphasizing Ripple’s commitment to operating within legal frameworks.
The news had an immediate positive impact on XRP’s market performance, with the token’s price surging by approximately 13% to nearly $2.56. This surge reflects renewed investor confidence and underscores the market’s sensitivity to regulatory developments.
This development also signals a broader shift in the SEC’s approach to cryptocurrency regulation. Under the current administration, the SEC has shown signs of retreating from aggressive oversight, including dropping lawsuits against other major crypto entities like Coinbase and Kraken. This evolving regulatory landscape presents both opportunities and challenges for the crypto industry, which must now focus on delivering real-world use cases and addressing ongoing concerns about potential scams and market volatility.
As Ripple moves forward, the company continues to leverage XRP and its open-source XRP Ledger for cross-border payments, with approximately 95% of its operations occurring outside the United States. Ripple remains the largest holder of XRP tokens, positioning itself strategically in the evolving global financial ecosystem. The conclusion of this legal saga not only marks a victory for Ripple but also sets a precedent for how cryptocurrencies are perceived and regulated in the United States, potentially influencing future regulatory approaches and the broader adoption of digital assets
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