SEC Drops Lawsuit Against Ripple – XRP Rises By 15%

In a significant turn of events, the US Securities and Exchange Commission (SEC) has officially dropped its remaining lawsuit and appeal against Ripple Labs. 

The announcement came directly from Ripple CEO Brad Garlinghouse, signaling the conclusion of the years-long legal battle that had clouded the regulatory landscape for crypto.

SEC ends legal fight, Ripple emerges victorious

The SEC’s decision to withdraw its lawsuit marks a major victory for Ripple and the broader crypto industry. The agency had originally accused Ripple of conducting an unregistered securities offering through the sale of XRP, alleging the company raised $1.3billion illegally.

However, after a series of legal setbacks, including a partial ruling against the SEC in July 2023, the regulator has now opted to close the case rather than pursue further appeals.

SEC’s losing battle against Ripple

The SEC filed its lawsuit against Ripple in December 2020, arguing that XRP was a security and that Ripple’s sales violated federal securities laws. Ripple fought back, maintaining that XRP was a decentralized cryptocurrency similar to Bitcoin and Ethereum.

In July 2023, Judge Analisa Torres ruled that while Ripple’s institutional sales of XRP constituted securities transactions, its programmatic sales to retail investors did not. This was a critical blow to the SEC’s case, as it undermined the regulator’s broader attempt to classify crypto tokens as securities. The ruling was seen as a partial victory for Ripple and the industry.

The SEC had initially sought nearly $2bn in penalties from Ripple but later reduced its demand to $125m. As Ripple continued to push back, the case was inching toward a settlement when the SEC made the surprise decision to drop its remaining claims entirely.

What’s next for Ripple and XRP?

With the lawsuit behind them, Ripple can now focus on expanding its operations and strengthening its partnerships. XRP’s price has already surged on the news, reflecting renewed confidence among investors.

As the crypto industry reacts to this landmark decision, the SEC’s next moves in regulating digital assets remain uncertain. However, for now, Ripple has emerged victorious, setting a crucial precedent in the ongoing battle between crypto firms and regulators.