Despite the Ripple and SEC Back to the Table report in a CNFupdate, according to recent reports, the U.S. Securities and Exchange Commission (SEC) has officially withdrawn its appeal against Ripple Labs, effectively concluding a protracted legal battle that began in December 2020.
The SEC’s lawsuit accused Ripple of conducting an unregistered securities offering through the sale of its XRP token. However, a pivotal ruling in August 2024 determined that XRP is not a security when traded on public exchanges, although the court upheld penalties for institutional sales, ordering Ripple to pay $125 million. With the SEC’s recent decision to drop its appeal, Ripple CEO Brad Garlinghouse hailed the outcome as a “resounding victory” for both the company and the broader crypto industry.
Regulatory Shifts Under New Leadership
This decision marks a significant shift in the SEC’s approach to cryptocurrency regulation, coinciding with a change in leadership following President Donald Trump’s re-election. Under the new administration, the SEC has adopted a more crypto-friendly stance, dismissing lawsuits against major crypto firms such as Coinbase and Kraken.
A Reuters report suggests that the new SEC leadership could classify XRP as a commodity, redefining how digital assets are regulated in the U.S. In a positive tone, it was stated in the post:
Ripple Chief Legal Officer Stuart Alderoty posted separately that “Ripple is now in the driver’s seat and we’ll evaluate how best to pursue our cross appeal. Regardless, today is a day to celebrate.
XRP’s Market Response
As shared in AdviserMagazine.com, the market responded positively to the SEC’s decision, with XRP’s price surging over 10% to $2.47, cementing its position as one of the best-performing digital assets. The token has already gained over 200% during the past months, indicating strong investor optimism. According to Axios, this legal victory and the subsequent market response underscore the growing acceptance and legitimacy of cryptocurrencies in the financial landscape.
As of now, XRP is trading at $2.08 USD, reflecting a 2.97% drop over the past day and an increase of 16.24% over the past week. See XRP price chart below: