Ripple has achieved a key victory in its protracted legal confrontation with the US Securities and Exchange Commission (SEC).
On March 19, Ripple’s CEO Brad Garlinghouse announced that the regulator had withdrawn its appeal against the blockchain firm, representing a major triumph for Ripple and the wider cryptocurrency sector.
He stated:
“This is it – the moment we’ve been anticipating. The SEC will back down on its appeal – a definitive win for Ripple, for crypto, from every angle.”
Garlinghouse further expressed his excitement, highlighting that the ruling demonstrated Ripple’s compliance with legal standards. He described the SEC’s move as a pivotal moment for the sector, affirming the credibility of digital assets.
Ripple’s Chief Legal Officer, Stuart Alderoty, shared this viewpoint, indicating that the ruling bolsters Ripple’s standing and establishes a legal benchmark for the US cryptocurrency market.
Alderoty noted:
“With the SEC dropping its appeal, Ripple is now in a strong position and we’ll consider the best way to proceed with our cross appeal. Regardless, today is a moment to celebrate this win.”
As reported by CryptoSlate, following the announcement, XRP surged more than 10% to $2.47, having already increased over 200% in recent months, confirming its status as one of the top-performing digital assets.
SEC vs. Ripple
Ripple’s ongoing legal struggle with the SEC began back in December 2020, when the agency accused the firm of gathering $1.3 billion through unregistered XRP sales.
After years of court proceedings, a crucial ruling in August 2024 established that XRP does not qualify as a security when traded on public exchanges.
Nonetheless, the court upheld penalties related to institutional sales, mandating Ripple to pay $125 million—significantly less than the initial $2 billion sought by the SEC. Despite this, the SEC chose to appeal the decision.
However, the regulatory landscape underwent a substantial transformation after Donald Trump’s electoral victory in 2024, ushering in a more crypto-friendly policy shift with the departure of Gary Gensler from the regulatory agency.
Under the new leadership of Acting Chair Mark Uyeda, the SEC has adopted a less confrontational approach toward digital assets, dropping lawsuits against significant crypto companies, including Coinbase, Gemini, and Kraken.
Recent reports suggest that the new SEC administration might redefine XRP as a commodity, potentially altering how digital assets are regulated in the US.
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