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Ripple CEO Brad Garlinghouse has announced a major development in the lawsuit with the U.S. Securities and Exchange Commission (SEC). He revealed that the SEC has decided to drop its appeal, a major victory for Ripple and the crypto community. Garlinghouse expressed optimism, saying, “This is the moment we’ve been waiting for. The SEC dropping its appeal is a major victory for Ripple, for cryptocurrency, no matter how you look at it. The future is bright. Let’s build.”
Lawsuit History
The lawsuit between Ripple Labs and the SEC began in December 2020, when the SEC filed a lawsuit against Ripple, alleging that the company conducted an illegal initial coin offering (ICO) when it sold its XRP tokens. The SEC argued that XRP is a security and therefore subject to regulation.
Ripple, in turn, argued that XRP is a cryptocurrency and cannot be classified as a security. The company accused the SEC of lacking clear guidelines for classifying cryptocurrencies and of taking an arbitrary approach to regulation.
Ripple's Court Wins
The litigation lasted several years and attracted the attention of both the crypto community and investors. During this time, Ripple achieved a number of court victories, including a decision to inadmissible certain evidence that the SEC tried to introduce in court.
In July 2023, the court issued a decision that largely supported Ripple's position, stating that selling XRP on exchanges does not violate securities law. This decision became an important precedent for the entire cryptocurrency market and could have an impact on further regulation in this area.
Market Impact
The withdrawal of the SEC's appeal could be a significant step forward for Ripple and the entire cryptocurrency sector. This decision could bring greater clarity to cryptocurrency regulation and strengthen investor confidence in the market. Garlinghouse and the Ripple team are optimistic that they will continue to develop their technology and services in the new regulatory landscape.
