The SEC has ended its long-standing legal battle against Ripple, marking a significant event for the crypto industry.
The SEC’s Case Against Ripple
The saga began in December 2020 when the SEC accused Ripple Labs of raising $1.3 billion through an unregistered sale of XRP tokens. This was amid ongoing debates on how digital assets should be regulated in the U.S. Ripple's CEO, Brad Garlinghouse, maintained that XRP is a digital asset, not a security, leading to a judicial ruling that XRP is not a security for retail transactions.
Political Ties and Financial Influence
It is known that Ripple's executives financially supported U.S. political campaigns, including contributions to Donald Trump's inaugural committee. This has led to speculations about political influence impacting the SEC’s decision. Brad Garlinghouse highlighted new government leadership that is pursuing a constructive path forward for crypto regulation.
The Impact on the Crypto Industry
The SEC's decision to drop the lawsuit is a significant signal for the cryptocurrency industry, potentially leading to less aggressive regulatory decisions for other crypto companies. It also strengthens Ripple's position to pursue an XRP-based ETF.
Ripple's victory over the SEC is a landmark event for the cryptocurrency industry, illustrating the potential for successful resistance against regulatory challenges.
