XRP Gains Momentum as Sec Set to Drop Case Against Ripple
XRP spikes as the US SEC decides to dismiss its long-standing lawsuit against Ripple, putting an end to a legal battle that spanned over four years.
Ripple CEO Brad Garlinghouse has announced the end of the long-standing legal battle against XRP by U.S. Securities and Exchange Commission. The case started in December 2020, when the US SEC filed a lawsuit accusing Ripple of selling XRP as unregistered security.
Garlinghouse made this announcement following last week’s reports of their ongoing settlement discussions with Ripple that the SEC was deliberating whether to classify XRP as a commodity. The potential reclassification arises from consideration of XRP’s utility and trading characteristics, comparing it to Ethereum, which the SEC classified as a commodity.
In a statement on X on March 19, Garlinghouse Ripple CEO called the lawsuit a failed attempt by the SEC to regulate the crypto industry through enforcement. He condemned the SEC’s approach under Chairman Gary Gensler, asserting that the regulator harmed investors instead of protecting them
Garlinghouse attributed the $15 billion market value loss following the SEC’s initial lawsuit filing to the regulator’s actions, labeling the SEC a “market manipulator.” Garlinghouse described the Sec vs. Ripple lawsuit as “the first major shot fire in the war on crypto,” that resulted in approximately $15 billion in losses for XRP holders.
SEC Confirms Ripple’s XRP Is Not A Security
The Ripple CEO also emphasized that the company secured victories on key legal points, “proving that the digital asset XRP is not a security. That is now the law” Ripple had previously won a partial victory when a U.S. judge ruled that XRP was not a security in secondary market sales. XRP spiked 10% on the news and is currently trading at $2.55.
Under Acting Chairman Mark Uyeda, the SEC has taken significant steps to transform its regulatory approach to crypto. The securities regulator has withdrawn from more than 10 prominent crypto enforcement cases, including those involving Coinbase, Uniswap Labs, and Kraken, among others.
The resolution comes as new leadership in the executive and legislative branches seeks to establish a regulatory framework for crypto assets in the US. Garlinghouse also noted that Ripple’s legal battle set a precedent, paving the way for clearer regulatory guidelines.
