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Ripple Triumphs:
SEC Drops Appeal, XRP Surges as Crypto Regulation Shifts
SEC Drops Appeal, Ending Four-Year Legal Battle with Ripple
In a landmark development for the cryptocurrency industry, Ripple Labs has announced that the U.S. Securities and Exchange Commission (SEC) is withdrawing its appeal in the ongoing legal battle over the classification of XRP tokens. This decision marks the end of a four-year dispute that has significantly impacted the regulatory landscape for digital assets.
The SEC’s initial lawsuit, filed in December 2020, alleged that Ripple’s sale of XRP tokens constituted an unregistered securities offering. In July 2023, U.S. District Judge Analisa Torres delivered a mixed ruling, stating that while XRP sales to institutional investors violated securities laws, sales on public exchanges did not meet the legal definition of a security. Ripple was subsequently fined $125 million for the institutional sales, a penalty currently on hold pending Ripple’s appeal.
Ripple Secures Victory as SEC Drops Appeal, XRP Surges 13%
Ripple CEO Brad Garlinghouse celebrated the SEC’s decision to drop the appeal, calling it a “resounding victory” and a “long overdue surrender” by the regulator. Chief Legal Officer Stuart Alderoty echoed this sentiment, stating that Ripple is now “in the driver’s seat” and will evaluate the best course of action regarding their cross-appeal.
The resolution of this case has had an immediate positive impact on XRP’s market performance. Following the announcement, XRP’s price surged by approximately 13%, reaching nearly $2.56. This uptick reflects renewed investor confidence in XRP’s regulatory standing and future prospects.
SEC Softens Crypto Stance as Ripple Case Ends Under Trump’s Second Term
This development occurs amidst a broader shift in the SEC’s approach to cryptocurrency regulation. Since President Donald Trump began his second term in January, the SEC has retreated on crypto oversight, ending civil lawsuits against crypto exchanges Coinbase and Kraken, and indicating a potential resolution in its fraud case against Chinese entrepreneur Justin Sun. President Trump has nominated Paul Atkins, a Washington lawyer seen as supportive of the crypto industry, to become SEC chair, replacing Gary Gensler.
The conclusion of the Ripple case is widely viewed as a pivotal moment for the cryptocurrency industry, potentially setting a precedent for how digital assets are regulated in the United States. As the industry continues to evolve, stakeholders are hopeful that this decision will lead to more clarity and a balanced regulatory environment that fosters innovation while protecting investors.
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