Ripple wins lawsuit; SEC drops four-year legal battle

Ripple has announced that the SEC has officially dropped its four-year lawsuit against the company, marking the end of a significant legal battle in the cryptocurrency sector. The suit accused Ripple of selling its XRP token without registering it as a security, which Ripple has denied. Ripple CEO Brad Garlinghouse celebrated the victory, stating that the outcome challenges the SEC's aggressive stance on cryptocurrency in the U.S. Ripple's Chief Legal Officer, Stuart Alderoty, emphasized that Ripple's case was a watershed moment for the crypto industry. He noted that it was the SEC's first major lawsuit and will now be the last they abandon. The price of XRP rose by about 11% following the announcement. Ripple spent a hefty $150 million fighting the lawsuit, especially against the SEC's former chair, Gary Gensler. A notable ruling in July 2023 stated that XRP is "not necessarily a security," undermining the SEC's claims. This ruling is seen as a pivotal moment that has shifted the narrative around cryptocurrency regulation. It has also had political implications. Just over a year after the ruling, former President Donald Trump, who once criticized cryptocurrency, re-emerged to promote a pro-crypto agenda and gathered significant support from the crypto community. In a sign of changing attitudes, the SEC recently hosted its first crypto roundtable with Hester Peirce leading efforts to develop a more cooperative regulatory approach. The SEC has also rescinded a controversial rule that treated crypto assets as liabilities for banks, seen as a barrier to broader adoption. Other crypto companies like Coinbase and Kraken have also seen their legal issues with the SEC resolved or dropped. Ripple's legal team has long argued that the SEC's actions were not aimed at enforcing the law but rather at applying pressure on the crypto industry. Despite this victory, Alderoty warned that the need for fair and transparent crypto regulation continues.