The U.S. Securities and Exchange Commission (SEC) has dropped its appeal in the long-running legal battle against Ripple, leading to a significant victory for the blockchain company and a surge in XRP’s price.
Ripple CEO Brad Garlinghouse announced the development on March 19, stating, “I’m finally able to announce that this case has ended. It’s over.” The lawsuit, which began in December 2020, accused Ripple of conducting an unregistered securities offering worth $1.3 billion through sales of its XRP token.
Read also: Ripple files trademark for ‘Ripple Custody’ to expand crypto services
A landmark victory for Ripple
The case saw a partial victory for Ripple in 2023 when a U.S. judge ruled that XRP was not a security in secondary market sales, though institutional sales were found to violate securities laws. The SEC initially indicated it would appeal the ruling but has now reversed its position.
Garlinghouse criticised the SEC’s approach, claiming, “The SEC was the market manipulator.” He argued that the regulator’s actions harmed investors, erasing about $15 billion in XRP’s market value when the lawsuit was first filed.
Under new leadership, the agency has withdrawn from several high-profile crypto enforcement cases, including those against Coinbase and Kraken. Garlinghouse hailed the decision as a resounding victory and a step toward establishing more transparent regulatory frameworks for digital assets.
Read also: UAE grants Ripple full licence for cross-border crypto payments
XRP price reacts positively
The crypto market responded enthusiastically to the news, with XRP’s price surging to $2.55. The outcome sets a precedent that XRP is not a security, which could influence future regulatory approaches to digital assets.
Garlinghouse expressed gratitude to Ripple’s employees, legal team, and the XRP community, stating, “This is a fight Ripple never wanted, but one we knew we had to win.”
Looking ahead, Garlinghouse emphasised the need for the U.S. to embrace crypto innovation, saying, “It’s time to make the United States the crypto capital of the world.”
The resolution is pivotal for the company and the broader cryptocurrency industry.
