Ripple's Landmark Victory: SEC Drops Appeal
By: Eva Baxter
Ripple Labs has announced a significant triumph in its prolonged legal battle with the United States Securities and Exchange Commission (SEC). This development marks an important milestone not just for Ripple but also for the broader cryptocurrency industry. Brad Garlinghouse, Ripple’s CEO, publicly celebrated the victory, confirming that the SEC has officially dropped its appeal against Ripple. This decisive victory is seen as a turning point, reinforcing the legitimacy of digital assets and their operators.
The legal dispute began in December 2020 when the SEC accused Ripple of raising $1.3 billion through unregistered sales of XRP, Ripple’s native cryptocurrency. After several years of intense litigation, a pivotal court ruling in August 2024 determined that XRP is not a security when traded on public exchanges, although the court upheld penalties for institutional sales, resulting in Ripple being ordered to pay $125 million. The SEC’s recent decision to drop the appeal signifies a significant shift under its new leadership, indicating a more favorable regulatory environment for digital assets.
Stuart Alderoty, Ripple’s Chief Legal Officer, hailed the decision as a day for celebration, emphasizing how the SEC’s action strengthens Ripple’s position both legally and in market perception. Meanwhile, XRP, the cryptocurrency at the center of the legal dispute, has experienced a remarkable surge, appreciating more than 10% following the announcement. Market reactions highlight the already substantial growth the token has enjoyed, marking an increase of over 200% in recent months.
The shift in regulatory tone is part of a broader move under the new SEC management, led by Acting Chair Mark Uyeda, to adopt a more crypto-friendly stance. This has also included dropping lawsuits against other major crypto firms, suggesting that future classifications, such as considering XRP a commodity, might change the regulatory landscape for cryptocurrencies in the U.S., providing a more predictable and stable environment for digital innovation.
