Ripple CEO Brad Garlinghouse announced the end of the legal battle with the U.S. Securities and Exchange Commission (SEC), marking a significant milestone for the company and the crypto industry.
End of a Landmark Case
Garlinghouse announced that Ripple is dropping its cross appeal against the SEC. This news marks the end of nearly five years of litigation that began in December 2020 when the SEC filed a lawsuit accusing Ripple of selling the XRP token as an unregistered security. A crucial turning point was Judge Analisa Torres' ruling in July 2023, which established that while Ripple’s institutional XRP sales violated securities laws, programmatic sales on public exchanges did not.
What the Outcome Means
By stepping away from further appeals, both sides are accepting the original judgment. Ripple will pay the full $125 million fine and remain under the injunction restricting institutional XRP sales within the U.S. However, the 2023 ruling that XRP is not a security when traded on public platforms remains unchallenged, providing legal certainty for retail markets. This outcome is not only a legal resolution but also a strategic one, allowing Ripple to focus on growth and innovation without the uncertainty that has lingered for years.
Ripple’s Next Chapter
Garlinghouse made it clear that Ripple's focus is now on its core mission: building the ‘Internet of Value,’ aimed at creating blockchain-based payment infrastructure for real-time, low-cost cross-border transactions, using XRP as a liquidity bridge asset. With regulatory clarity on XRP’s status and the legal battle concluded, Ripple is better positioned to attract partners and drive innovation in the global payments landscape.
The Ripple vs. SEC saga may finally be drawing to a close, but its impact will continue to resonate in the crypto industry for years to come.
