| Key Points: – The SEC has officially ended its four-year legal battle against Ripple Labs, which had accused the company of selling XRP as an unregistered security. – Reports suggest political factors may have influenced the Ripple lawsuit, while discussions continue on whether XRP should be classified as a commodity. |
The U.S. Securities and Exchange Commission (SEC) has officially dropped Ripple lawsuit, marking the conclusion of a four-year legal battle that significantly impacted the cryptocurrency industry.
The dismissal of the Ripple lawsuit removes legal uncertainty for the company and XRP, allowing it to move forward without the looming threat of enforcement action.
SEC Drops Ripple Lawsuit, Ending Four-Year Legal Battle
Ripple Labs CEO Brad Garlinghouse announced the decision on March 19, calling it a long-overdue resolution. Reflecting on the prolonged legal dispute, he asserted that the case was “doomed from the start.”
“I’m finally able to announce that this case has ended. It’s over,” Garlinghouse stated.
The SEC initially sued Ripple Labs in 2020, alleging that the company had raised $1.3 billion through the sale of XRP, which it claimed was an unregistered security. The case led to significant market volatility and losses estimated at around $15 billion for XRP holders.
In a pivotal ruling last year, U.S. District Judge. Analisa Torres determined that Ripple’s programmatic sales of XRP did not violate securities laws due to a blind bid process. However, she ruled that direct sales to institutional investors did constitute securities transactions, leading to a $125 million fine for Ripple.
Market Reaction and Regulatory Shifts
Following the SEC’s withdrawal, XRP’s price surged by nearly 13%, pushing it above $2.5, with trading volume reaching $5.7 billion. Investors responded positively to the development, signaling renewed confidence in the digital asset’s future.
The SEC’s decision aligns with a broader shift in its regulatory stance under Acting Chairman Mark Uyeda. The agency has recently withdrawn from over 10 high-profile crypto enforcement cases, including those involving Coinbase, Gemini, OpenSea, Robinhood, Uniswap, and Consensys.
Political and Industry Implications
Legal experts suggest that political factors may have played a role in the case’s resolution. Reports indicate that Ripple contributed $5 million to President Donald Trump’s inauguration fund. Additionally, Garlinghouse reportedly met with Trump in January 2025, raising speculation about potential political influences on the SEC’s decision.
The SEC’s retreat from its lawsuit also comes amid discussions about XRP’s classification. Recent reports indicated that the agency was considering recognizing XRP as a commodity, similar to Ethereum, based on its trading characteristics and utility.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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