Ripple Triumphs: SEC Drops Lawsuit, XRP Soars 13% Amid Crypto Industry Celebration
Staff Editor Ripple Prevails as SEC Drops Lawsuit, XRP Surges 13%
In a significant development for the cryptocurrency industry, Ripple Labs announced today that the Securities and Exchange Commission (SEC) has concluded its lawsuit against the firm. The news triggered a substantial price increase for XRP, Ripple’s native cryptocurrency, which surged over 13% to reach $2.54.
The resolution of this high-profile case marks a potential shift in regulatory attitudes towards cryptocurrency under the current administration. The lawsuit, initiated during President Joe Biden’s tenure, alleged that XRP was an unregistered security. A ruling in favor of the SEC could have had far-reaching implications, potentially redefining many cryptocurrencies as securities subject to stringent regulations.
Ripple CEO Brad Garlinghouse revealed the lawsuit’s conclusion in a video message, expressing relief and optimism for the company’s future. The SEC has declined to comment on the case’s outcome.
This legal battle was part of a broader regulatory crackdown on the crypto industry led by former SEC Chairman Gary Gensler. Other major crypto exchanges, including Coinbase, Kraken, and Binance, were also targeted during this period.
The decision to drop the case against Ripple follows a partial win for the company in 2023, which led to an SEC appeal that has now been withdrawn. This development, along with the recent dropping of a similar lawsuit against Coinbase, suggests a potential shift towards a more industry-friendly regulatory approach.
Crypto experts view the SEC’s handling of the Ripple case as indicative of this broader regulatory shift. Zack Shapiro from the Bitcoin Policy Institute noted, “Settling with Ripple could signal a withdrawal of the SEC’s stance that tokens are securities.”
As the crypto industry digests this news, many are watching closely to see how this development might shape future regulatory actions and the overall landscape of digital assets in the United States.
