SEC Dismisses Ripple Case Leading To Surge In XRP Value
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Ripple’s XRP token increased by 10% after the company announced that it has won its long legal fight against the Securities and Exchange Commission. Ripple’s Chief Executive Officer, Brad Garlinghouse, described it as a clear victory, saying the SEC has decided not to continue with its appeal against the blockchain and crypto firm.
This decision reflected a shift in Washington’s stance towards the industry since Donald Trump took office. The SEC had originally taken legal action against Ripple, Garlinghouse, and co-founder Christian Larsen, accusing them of raising more than $1.3 billion through the sale of unregistered securities.
Ripple Wins Legal Battle Over XRP Sales, SEC Drops Appeal After $125 Million Penalty
A judge later ruled that Ripple had not broken federal securities laws when it sold the XRP token on public exchanges and through algorithms. However, the ruling did not clear the company entirely, as it was found that sales to institutional investors had violated securities laws.
Because of this, Ripple was ordered to pay $125 million. The company still viewed the decision as a success, pointing out that the SEC originally sought a much larger penalty of $2 billion.
The SEC initially signaled its intent to challenge the ruling by filing an appeal, but it has now decided to drop the matter. Garlinghouse reacted by criticizing the SEC’s past leadership, saying the decision marked a long-awaited retreat by the regulator. He stated that the SEC has not been focused on protecting investors but instead, they tried to intimidate companies in the industry.
He accused the regulator of bringing a pointless case that harmed XRP holders, wiping out $15 billion in value. According to him, the SEC acted more like a market manipulator than an investor protector.
Ripple Sees Hope For XRP As Regulatory Climate Becomes More Supportive
Before, Ripple gave $50 million to Fairshake, a group that helps leaders who like crypto. Garlinghouse now thought new leaders wanted to be fair and work better with crypto rules.
Ripple was not the only company to see positive developments under the current administration. With Trump in the White House and new leadership at the SEC, cases against other crypto firms, including Coinbase and Robinhood, had also been dropped.
Garlinghouse called this a hopeful moment for the industry, urging companies and investors to unite and move past divisions.
As rules change, crypto leaders see a chance to make clear rules for businesses. Many think working together with rule-makers will help crypto grow, bring more money, and keep it strong for a long time.
