The U.S. Securities and Exchange Commission (SEC) withdrew its appeal in the case against Ripple Labs, effectively ending the long-running legal battle with the company.
Brad Garlinghouse, CEO of Ripple Labs, announced that the SEC dropped its appeal against the verdict previously issued by Judge Analisa Torres. This marks a decisive victory for Ripple after years of litigation.
“Ripple is the first company with the resources, determination, and grit to fight back against the agency’s overreach,” Garlinghouse emphasized in his statement. He also noted that the lawsuit was the first major attack by the U.S. government on the crypto industry. However, the court proceedings revealed that the SEC wasn’t acting in the interest of investors but was instead attempting to intimidate crypto market participants to establish control over the sector.
The court repeatedly criticized the SEC for its overreach, and it was ultimately proven that XRP isn’t a security. This decision sets an important precedent for the entire crypto industry and could pave the way for more reasonable regulatory policies in the U.S.
Ripple representatives hope that this ruling will empower other crypto companies to defend their rights. They also believe that the U.S. now has an opportunity to become a leader in digital assets through constructive dialogue with the country’s new political leadership.
Following Donald Trump’s inauguration, the SEC shifted its stance on cryptocurrency regulation, dropping several lawsuits against major crypto companies.
