The CEO of Ripple, Brad Garlinghouse, has declared that the U.S. Securities and Exchange Commission is withdrawing its appeal in the protracted legal dispute regarding XRP.
This case, which initiated in December 2020, accused Ripple of distributing XRP as an unregistered security.
In a statement shared on X, Garlinghouse characterized the lawsuit as a misguided effort by the SEC to impose regulations on the crypto sector through enforcement actions.
He remarked that the case was “doomed from the beginning” and presented it as part of a wider governmental initiative to “choose winners” in the cryptocurrency market.
He further emphasized that Ripple’s legal fight established a significant precedent, leading to clearer regulatory frameworks.
Previously, Ripple achieved a partial victory when a U.S. judge declared that XRP was not a security for sales made in the secondary market. However, the court also determined that transactions involving institutional investors breached securities laws.
Although the SEC initially expressed its intention to appeal, Garlinghouse disclosed that the agency has now opted to abandon the case altogether.
The SEC has yet to officially verify this information.
SEC negatively impacted investors
Garlinghouse took aim at the SEC’s management under Chairman Gary Gensler, asserting that the regulator has harmed investors instead of safeguarding them.
He highlighted the $15 billion in market capitalization lost following the SEC’s initial lawsuit filing, branding the agency as a “market manipulator.”
This case has garnered significant attention as a crucial legal confrontation for the crypto sector. Ripple’s win could shape future regulatory approaches to digital assets. Garlinghouse addressed the broader crypto community, suggesting that this result signals progress toward fostering a more welcoming environment for crypto innovation in the U.S.
XRP experienced a surge following the news and is currently trading at $2.55.