The U.S. Securities and Exchange Commission (SEC) has officially dropped its appeal in the long-running lawsuit against Ripple, bringing an end to a four-year legal battle. Ripple CEO Brad Garlinghouse announced the news, calling it a significant victory not just for Ripple but for the entire crypto industry.
Garlinghouse emphasized that Ripple has always believed it was on the right side of the law and history. He criticized the SEC’s lawsuit, stating it was never about protecting investors but rather an attempt to intimidate and weaken the crypto industry through legal pressure. The lawsuit reportedly wiped out $15 billion in market value, and Garlinghouse accused the SEC of trying to manipulate the market rather than seeking justice.
Throughout the case, Ripple secured several key legal wins. The judge repeatedly criticized the SEC for failing to follow the law, and the agency was even sanctioned for misconduct during the discovery process. Most importantly, Judge Analisa Torres ruled in July 2023 that XRP is not a security—a landmark decision that sets a legal precedent for future crypto-related cases.
**What’s Next for Ripple?**
With the SEC dropping its appeal, Ripple is now in control of its next steps. Chief Legal Officer Stuart Alderoty stated that the company will evaluate whether to proceed with its own cross-appeal. The unresolved issues include a $125 million fine and a permanent injunction on Ripple’s institutional sales.
Legal experts have outlined several possible outcomes:
1. Ripple could continue its appeal, potentially leading to further clarification on the legal definition of investment contracts.
2. Ripple might drop its appeal, sending the case back to the trial court for potential amendments to the judgment.
3. Both parties could settle privately without modifying the ruling, and Ripple could drop its appeal.
4. Ripple could simply pay the fine and move forward.
**A Turning Point for Crypto Regulation?**
Garlinghouse sees the SEC’s decision as a sign that the agency’s aggressive stance against crypto may be ending. Notably, the SEC under new leadership has also dropped cases and investigations against other crypto firms, including Coinbase, Consensys, and OpenSea.
Garlinghouse called on the crypto industry to unite, learn from Ripple’s legal strategy, and push for fairer regulations. He expressed hope that the new U.S. administration would adopt a more constructive approach to crypto policy.
Following the announcement, XRP surged to $2.57, marking a 14.59% gain in 24 hours. However, the momentum has since slowed, with XRP currently trading at $2.50. Analysts suggest the market may have already priced in the resolution of the case.
**What do you think this means for the future of crypto regulation? Share your thoughts below!**
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