XRP surged following an announcement by Ripple CEO Brad Garlinghouse that the U.S. Securities and Exchange Commission (SEC) is dropping its appeal in the long-running lawsuit against the payments company. The cryptocurrency saw an increase of nearly 11%, reaching $2.52. Speaking at the Digital Assets Summit in New York, Garlinghouse reflected on the legal battle, calling it a “painful journey” that lasted more than four years. He emphasized his belief that Ripple was “on the right side of the law and history” and criticized the SEC’s approach, stating that the agency’s actions were not in “good faith” and that the case lacked victims or investor losses.
The SEC initially sued Ripple in 2020, alleging that the company had violated U.S. securities laws by selling XRP without proper registration. In a 2023 ruling, U.S. District Judge Analisa Torres issued a decision that partially favored Ripple, determining that XRP was not a security when sold on exchanges to retail investors. However, the ruling maintained that sales to institutional investors constituted an unregistered securities offering. The case’s resolution comes amid broader shifts in SEC enforcement under the new administration.
In recent months, the SEC has closed investigations into Coinbase, Robinhood’s crypto unit, Uniswap, Gemini, and Consensys without taking enforcement action. Additionally, the agency has scaled back its crypto enforcement unit and clarified that meme coins do not fall under securities regulations. This week, the SEC’s newly established crypto task force is set to begin a series of roundtable discussions aimed at defining the security status of digital assets. The move signals an effort to establish clearer regulatory guidelines for the industry.
XRP, created in 2012 by Ripple’s founders, serves as the native token of the XRP Ledger, an open-source blockchain used primarily for cross-border payments. Ripple remains the largest holder of XRP, with approximately 95% of its business operations occurring outside the U.S. The cryptocurrency has been among the biggest beneficiaries of the recent shift in regulatory sentiment, particularly following the 2024 U.S. presidential election. XRP has surged more than 390% since then and is up 20% so far this year. – By CryptoWire News Desk.
