SEC Drops XRP Lawsuit Against Ripple In a Landmark Decision
In a landmark decision, the SEC has officially dropped its appeal and lawsuit against Ripple Labs, as announced by Ripple CEO Brad Garlinghouse.
This development brings an end to a multi-year legal battle that has significantly impacted the crypto industry and XRP.
SEC Vs Ripple Is Finally Over
The SEC originally filed the lawsuit in December 2020, accusing Ripple of conducting an unregistered securities offering worth $1.3 billion through XRP sales. However, in July 2023, U.S. District Judge Analisa Torres ruled that XRP’s programmatic sales to retail investors did not constitute securities transactions, dealing a major blow to the SEC’s case. While the ruling upheld that institutional sales of XRP violated securities laws, the agency had been pursuing further legal action against Ripple.
With the SEC’s decision to withdraw its appeal and drop the lawsuit, Ripple has secured a significant regulatory victory. This outcome is expected to set a precedent for how digital assets are classified in the U.S. and could influence the SEC’s broader approach to crypto enforcement.
Market reaction has been swift, with XRP seeing an immediate price surge following the announcement. Industry leaders have also hailed the decision as a step toward clearer crypto regulation.
As the case concludes, attention now shifts to how the SEC will navigate future crypto oversight and whether this signals a shift in its regulatory stance.
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