Key Takeaways:
- Industry criticism of the SEC’s enforcement-driven approach to regulating crypto has intensified as a result of the case.
- XRP’s price surged after the announcement, pushing it higher in the market rankings.
- The move was triggered by fresh pressure on Congress to define the SEC’s role in regulating digital assets.
The U.S. Securities and Exchange Commission (SEC) has officially ended its legal proceedings against Ripple, concluding a four-year court battle over XRP’s classification, according to a statement on X by Ripple CEO Brad Garlinghouse on Wednesday.
Garlinghouse described the 2020 lawsuit as the start of broader regulatory action targeting the cryptocurrency sector. He called the SEC’s decision to end the case “a long overdue surrender.”
Ripple Legal Win May Shape Future Crypto Regulations
Throughout the case, Ripple argued that XRP is not a security and criticized the SEC’s approach.
Garlinghouse claimed the regulator wiped out billions of dollars in value from XRP holders while pursuing a non-fraud case.
“This was lawfare, a war of legal terror,” said Garlinghouse. “Fortunately, the judge rebuked the SEC multiple times in this journey.”
“The SEC wasn’t seeking justice. They were seeking to win a case at any cost,” Garlinghouse said, adding that the judge overseeing the case sanctioned the agency for discovery abuses and criticized its handling of the law.
With the case now resolved, Garlinghouse suggested that Ripple’s outcome could influence broader regulatory clarity.
“These wins have laid the groundwork for policy makers to adopt a set of rules for crypto that are in line with nearly a century of securities law,” he said.
He thanked Ripple employees, legal teams, and XRP supporters, calling the conclusion a “turning point for the industry.”
XRP Climbs to Third Largest Crypto by Market Cap
XRP surged over 10% following the announcement, trading at $2.56 with a 14.5% increase over the past 24 hours.
CoinMarketCap data shows XRP became the third largest cryptocurrency by market capitalization, reaching $149 billion and surpassing Tether’s $143 billion valuation.
After dropping its lawsuit against Coinbase, the SEC’s decision to end the Ripple case signals a shift in its enforcement strategy.
Recent lawsuits have increased pressure on the agency to reconsider its approach to digital asset regulation.
The outcomes of these cases have led to congressional calls for legislation to clarify crypto regulations and define the SEC’s role.
Industry representatives argue that enforcement actions under unclear rules could weaken market confidence and limit growth.
Frequently Asked Questions (FAQs):
The SEC’s retreat could also be a sign of a shift in regulatory cooperation and transparency, which would decrease the need for enforcement actions and more suit a good climate for the crypto sector.
Because the regulatory stability is felt, the favorable result will enhance institutional trust and motivate more investment in crypto.
The case’s verdict may have an impact on global regulatory organizations and result in standardized international standards for crypto supervision.
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