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XRP surges after Ripple CEO Brad Garlinghouse says SEC is dropping its lawsuit against the company
XRP surged after Ripple CEO Brad Garlinghouse said the Securities and Exchange Commission is no longer pursuing its appeal in the case against the payments company.
The price of XRP was last higher by nearly 14% at $2.57.
"It's been almost four years and about three months since the SEC originally sued us, certainly a painful journey in lots of ways," Garlinghouse said at the Digital Assets Summit in New York Wednesday morning. "I really deeply believed that we were going to be on the right side of the law and on the right side of history."
"The system just feels broken. That we had to fight this fight for the industry and you had an SEC attacking the industry, particularly the Ripple case," he continued. "There were no victims, there was no investor loss. They were just not acting in good faith."
In 2020, the SEC sued Ripple for breaching U.S. securities laws by selling XRP without first registering it with the agency. The company scored a partial victory in 2023 when SEC. U.S. District Judge Analisa Torres handed down the decision, which was hailed as a landmark win for the crypto industry. Still, while XRP at that point was not considered a security when sold to retail investors on exchanges, it was considered an unregistered security offering if sold to institutional investors.
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This week, the newly formed SEC crypto task force will kick off a roundtable series focused on defining the security status of digital assets.
XRP was created by the founders of Ripple in 2012. It is the native token of the open source XRP Ledger, which Ripple uses in its cross-border payments business – about 95% of which takes place outside the U.S. Ripple is the largest holder of XRP coins.
The coin was the biggest beneficiary of the post-election Trump trade. It's up more than 400% since then and up 22% this year.
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Meanwhile, ethereum (ETH) gained 2.26%, XRP climbed 2.79%, but solana (SOL) took a 6% hit. ADA dropped 4.4%, DOGE fell 4%, and TRX slid 1.6% over the same period.
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Fox Business reporter Eleanor Terrett added that the delay in finalizing the case stems from Ripple's legal team seeking better terms following a $125 million fine and an injunction from an August 2023 district court ruling, which barred institutional XRP sales.
"The argument, I'm told, is that if the new SEC leadership is wiping the enforcement slate clean for all previously-targeted crypto firms, why should Ripple still be penalized?" Terrett posted on X.
The lawsuit's trajectory shifted after Judge Analisa Torres ruled in July 2023 that Ripple's programmatic XRP sales did not breach securities laws due to their blind bid process, though institutional sales were deemed securities.
The SEC's approach has softened under President Trump's administration, with the December 2024 appointment of crypto advocate Paul Atkins as the incoming SEC chair, pending confirmation.
The agency has since withdrawn cases against Coinbase COIN, OpenSea, Robinhood HOOD, and UniSwap UNI/USD, and a task force led by Commissioner Hester Peirce is working to clarify which crypto assets qualify as securities.
Meanwhile, Franklin Templeton's recent filing for a spot XRP ETF—the largest asset manager to do so—reflects growing industry optimism fueled by Trump's crypto-friendly policies.