The Loss

According to Eliot Stein, a Bloomberg Intelligence analyst, this decision allows the agency to focus on other aspects of the case that it has not yet lost, instead of getting distracted by another case against individuals.

It is believed that the agency wants to avoid negative facts that may emerge during the trial of individuals, which could ultimately lead to its loss in the direct institutional sales case.

Also read: 'Securities' Delays Decisions on Launching Bitcoin ETFs... What's the Story?

For its part, Ripple noted that the agency's retreat from the lawsuit is a stunning capitulation by the government to the cryptocurrency community.

Stuart Alderoty, Ripple's chief legal officer, expressed his view that this decision is not a settlement but a surrender by the agency.