SEC drops lawsuit against Ripple

2025-03-19 07:06:12

Abstract generation in progress

In a landmark decision, the SEC has officially withdrawn its appeal and lawsuit against Ripple Labs, as announced by Ripple’s CEO, Brad Garlinghouse.

This development ends the long-running legal battle that has significantly impacted the cryptocurrency industry and XRP.

SEC vs Ripple has finally concluded

The SEC initially filed a lawsuit in December 2020, accusing Ripple of conducting an unregistered securities offering valued at $1.3 billion through the sale of XRP. However, in July 2023, Judge Analisa Torres of the U.S. District Court ruled that the sale of XRP to retail investors did not constitute a securities transaction, causing a major shock to the SEC’s case. While the ruling upheld that the sale of XRP to institutions violated securities laws, the agency has pursued further legal action against Ripple.

With the SEC withdrawing its appeal and dropping the lawsuit, Ripple has achieved an important regulatory victory. This outcome is expected to set a precedent for the classification of digital assets in the United States and may impact the SEC’s broader approach to enforcing cryptocurrency regulations.

The founder and CEO of Ripple, Garlinghouse, posted on X:

This is the moment we have been waiting for. The SEC will withdraw the appeal - a resounding victory for Ripple, for cryptocurrency, in every way you look at it.

The market reaction occurred quickly, with XRP witnessing an immediate price increase following the announcement. Industry leaders also praised this decision as a step towards clearer regulation of cryptocurrencies.

As the lawsuit concludes, attention now shifts to how the SEC will navigate cryptocurrency oversight in the future and whether this signals a change in their regulatory stance.

Disclaimer: All content on this website is for informational purposes only and is not investment advice. Readers should conduct their own research before making any investment decisions. We are not responsible, directly or indirectly, for any damages or losses arising from the use of or reliance on any content you read on this website.

XRP0,75%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.