Ripple CEO Brad Garlinghouse has announced that the U.S. Securities and Exchange Commission (SEC) is dropping its appeal in the long-standing legal battle over XRP. The case, which began in December 2020, alleged that Ripple had sold XRP as an unregistered security, leading to years of regulatory scrutiny and legal challenges.
Ripple Declares Victory
In a statement posted on X, Garlinghouse criticized the SEC’s lawsuit as a “failed attempt” to regulate the cryptocurrency industry through enforcement. He claimed that the case was “doomed from the start” and suggested that it was part of a broader government effort to selectively regulate digital assets.
“This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it. The future is bright. Let’s build,” Garlinghouse wrote in his post.
Ripple previously won a partial victory in 2023 when a U.S. judge ruled that XRP was not a security in secondary market sales. However, the ruling also found that sales to institutional investors did violate securities laws. While the SEC initially signaled its intention to appeal, Garlinghouse confirmed that the regulator has now opted to drop the case entirely.
SEC’s Impact on Investors and Market Manipulation Allegations
Garlinghouse also criticized the SEC’s handling of the lawsuit under Chairman Gary Gensler, arguing that the regulatory agency harmed investors rather than protecting them. He highlighted the $15 billion in market value wiped out when the lawsuit was first filed, calling the SEC a “market manipulator.”
Although the SEC has not officially confirmed the news, the case has been widely regarded as a key legal battle for the cryptocurrency industry. Ripple’s legal victory is expected to influence how regulators approach digital assets moving forward. Garlinghouse expressed optimism that this outcome could make the U.S. a more favorable environment for crypto innovation.
Market Reaction
Following the announcement, XRP surged in value and is currently trading at $2.55. The market’s positive response underscores the significance of the case’s resolution and its potential impact on future regulatory clarity for digital assets.
