The U.S. Securities and Exchange Commission (SEC) has decided to drop its lawsuit against Ripple, marking the end of a five-year legal dispute over the status of the XRP cryptocurrency. Ripple CEO Brad Garlinghouse announced the decision in an X post, calling it a victory for the company and the broader crypto industry. However, the SEC’s move remains subject to a final Commission vote.
Ripple Lawsuit Ends After Years of Legal Dispute
The SEC first sued Ripple in 2020, alleging that the company violated securities laws by selling XRP as an unregistered security to institutional investors. The case became a landmark battle in crypto regulation, with Ripple challenging the SEC’s stance on digital assets.
In 2023, U.S. District Judge Analisa Torres ruled that XRP was not a security in certain sales, dealing a major blow to the SEC’s argument. The ruling was seen as a key moment in the regulatory landscape, influencing how digital assets are classified under existing securities laws.
Garlinghouse described the lawsuit as an attempt by the SEC to intimidate the crypto industry. He emphasized that while former SEC Chair Jay Clayton initiated the lawsuit, current Chair Gary Gensler aggressively pursued it.
Impact on Crypto Regulation and Future Outlook
Garlinghouse said the case has paved the way for clearer regulatory guidelines in the crypto industry. He noted that Ripple’s legal battle set a precedent that could benefit other crypto firms facing similar challenges.
The lawsuit’s resolution comes amid shifting regulatory attitudes in the U.S. Garlinghouse pointed to changes in leadership within the executive and legislative branches as an opportunity to shape a more balanced approach to crypto regulation.
With the case now closed, Ripple is expected to focus on expanding its business without the legal uncertainty that had loomed over it for years. Meanwhile, the SEC’s decision not to pursue an appeal signals a potential shift in how regulators approach digital assets going forward.
