Ripple Emerges Victorious in Legal Battle with SEC
Ripple, a leading blockchain company, has emerged victorious in its long-standing legal battle with the US Securities and Exchange Commission (SEC). In a significant turn of events, the SEC has dropped its appeal against Ripple, marking a monumental win for the company and the broader cryptocurrency industry.
Brad Garlinghouse, the CEO of Ripple, confirmed the news on March 19, expressing his elation at the outcome. He stated, “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 case has demonstrated Ripple’s compliance with legal regulations, signaling a turning point for the industry and reinforcing the legitimacy of digital assets.
Stuart Alderoty, Ripple’s Chief Legal Officer, echoed Garlinghouse’s sentiments, highlighting that the ruling strengthens Ripple’s position and establishes a legal precedent for the US crypto market. Alderoty remarked, “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 seen a remarkable increase of over 200% in recent months, solidifying its position as one of the best-performing digital assets.
The legal dispute between Ripple and the SEC dates back to December 2020 when the regulator accused Ripple of conducting $1.3 billion in unregistered XRP sales. After years of legal proceedings, a pivotal ruling in August 2024 determined that XRP is not a security when traded on public exchanges. Despite this decision, Ripple was ordered to pay a reduced penalty of $125 million for institutional sales, significantly less than the original $2 billion sought by the SEC. The SEC subsequently appealed this ruling.
The regulatory landscape underwent a significant shift following the 2024 presidential election, leading to a more crypto-friendly approach under the leadership of Acting Chair Mark Uyeda. The SEC has taken a less aggressive stance on digital assets, dismissing lawsuits against major crypto firms such as Coinbase, Gemini, and Kraken. Speculation suggests that XRP may be classified as a commodity under the new SEC leadership, potentially reshaping the regulation of digital assets in the US.
Overall, Ripple’s victory in the legal battle against the SEC marks a significant milestone for the company and the cryptocurrency industry as a whole, paving the way for a more favorable regulatory environment for digital assets in the US.