SEC drops appeal against Ripple

The U.S. Securities and Exchange Commission (SEC) has decided to drop its appeal against Ripple Labs, marking a significant conclusion to a four-year legal battle.

Ripple (CRYPTO:XRP) CEO Brad Garlinghouse announced the news, describing it as a "resounding victory" for Ripple and the cryptocurrency sector.

The case began in December 2020, when the SEC sued Ripple over an alleged $1.3 billion unregistered securities offering through XRP sales.

In a 2023 ruling, U.S. Judge Analisa Torres determined that while institutional sales of XRP violated securities laws, retail sales did not.

Following the SEC's decision to drop its appeal, XRP's price surged by about 10%, reflecting increased investor confidence and market stability.

However, Ripple still faces a potential $125 million fine for past securities violations, which remains under appeal.

Garlinghouse praised the new SEC leadership for seeking a more constructive approach to cryptocurrency regulation, emphasising that this victory sends a positive signal for innovation in the U.S. crypto sector.

The SEC's decision aligns with a broader shift in regulatory approach under the Trump administration, which has scaled back enforcement actions against several crypto companies.

The end of this legal battle could pave the way for clearer guidelines on cryptocurrency regulation and potentially boost the chances of XRP exchange-traded funds (ETFs) being approved in 2025.

"It’s time to make the United States the crypto capital of the world," Garlinghouse noted, highlighting the potential for this decision to enhance innovation and adoption in the U.S. cryptocurrency sector.

At the time of reporting, the XRP price was $2.50.