The prolonged legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached a historic resolution. Ripple CEO Brad Garlinghouse announced via X (formerly Twitter) that the SEC will drop its appeal against the court ruling that declared XRP is not a security. This decision marks a pivotal victory for Ripple and the broader cryptocurrency industry.
Key Developments in the Ripple-SEC Case
- SEC Drops Appeal: The commission has abandoned its challenge to the July 2023 ruling that XRP’s retail sales did not violate securities laws.
- Legal Costs: Ripple spent nearly $200 million over four years defending its position.
- Political Donation: The firm donated $5 million to a pro-crypto political campaign, signaling its commitment to regulatory clarity.
Stuart Alderoty, Ripple’s Chief Legal Officer, stated:
"Today, Ripple moves forward—stronger than ever. This landmark case set a precedent for the domestic crypto industry. With the SEC dropping its appeal, Ripple is now in the driver’s seat."
Why This Victory Matters
The court’s original ruling delivered a mixed outcome:
- SEC’s Partial Win: Institutional sales of XRP were deemed a securities law breach.
- Ripple’s Major Win: XRP itself was not classified as a security, and its retail sales remained compliant.
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Market Reaction
- XRP Price Surge: The token’s value jumped 8% post-announcement, trading at $2.50.
- 24-Hour Momentum: A 13% increase in trading volume reflected renewed investor confidence.
Garlinghouse emphasized the case’s flaws in his video statement:
"This case was doomed from the start. Ripple was on the right side of the law—and history."
FAQs About the Ripple-SEC Resolution
1. What does the SEC’s decision mean for XRP?
The dismissal confirms XRP’s non-security status, eliminating regulatory uncertainty and bolstering its market position.
2. Will Ripple face further legal challenges?
While the SEC case is resolved, Ripple may still pursue its cross-appeal regarding institutional sales.
3. How does this impact other crypto projects?
The ruling sets a precedent for how regulators classify digital assets, potentially shielding similar tokens from SEC scrutiny.
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