Ripple Emerges Victorious in Legal Battle with SEC
Ripple has achieved a significant triumph in its ongoing legal dispute with the US Securities and Exchange Commission (SEC). On March 19, Ripple CEO Brad Garlinghouse confirmed that the SEC had decided to drop its appeal against the company. This development is not only a win for Ripple but also a positive outcome for the entire cryptocurrency industry.
Ripple’s Perspective
Brad Garlinghouse expressed his satisfaction with the outcome, stating, “This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it.”
Garlinghouse emphasized that the legal proceedings had validated Ripple’s adherence to regulatory guidelines. He described the SEC’s decision as a pivotal moment for the industry, reinforcing the credibility of digital assets.
Ripple’s Chief Legal Officer, Stuart Alderoty, also highlighted the significance of the ruling. He affirmed that the outcome bolsters Ripple’s standing and establishes a legal precedent within the US crypto market.
Stuart Alderoty stated, “With the SEC dropping its appeal, Ripple is now in the driver’s seat and we’ll evaluate how best to pursue our cross appeal. Regardless, today is a day to celebrate this victory.”
Following the announcement, XRP experienced a surge of over 10%, reaching $2.47. The token has witnessed a remarkable growth of over 200% in recent months, solidifying its position as one of the top-performing digital assets.
Overview of SEC vs. Ripple Legal Battle
The legal conflict between Ripple and the SEC dates back to December 2020 when the regulator alleged that Ripple had raised $1.3 billion through unregistered XRP sales. After an extended legal process, a crucial ruling in August 2024 determined that XRP is not classified as a security when traded on public exchanges.
Despite this ruling, penalties were imposed on Ripple for institutional sales, leading to a $125 million fine, significantly lower than the initial demand of nearly $2 billion by the SEC. Subsequently, the SEC decided to challenge this ruling.
However, the regulatory landscape underwent a transformation following the 2024 presidential election, resulting in a more crypto-friendly approach after Gary Gensler’s departure from the financial watchdog. Under Acting Chair Mark Uyeda’s leadership, the SEC adopted a less adversarial stance towards digital assets, dismissing lawsuits against prominent crypto companies like Coinbase, Gemini, and Kraken.
Reports have hinted at the possibility of the SEC classifying XRP as a commodity, potentially reshaping the regulatory framework for digital assets in the US.
