Ripple's legal victory against the SEC is a significant turning point for the entire crypto industry, highlighting the need for a new regulatory approach to digital assets.
SEC Ends Ripple Lawsuit After Four Years
This week, Ripple announced that the U.S. Securities and Exchange Commission (SEC) officially ended its lawsuit, concluding a lengthy and costly battle. The case, initiated in December 2020, accused Ripple of selling $1.3 billion in XRP tokens as unregistered securities. Ripple spent $150 million in legal fees and won a key ruling in 2023 that XRP is not necessarily a security, undermining the SEC's case foundation. Stuart Alderoty, the company's Chief Legal Officer, called the win a 'major wrench' in the SEC’s enforcement strategy.
SEC Shifts Tone at Crypto Roundtable
Following Ripple's defeat, the SEC held its first crypto roundtable. Hester Peirce, head of the agency’s Crypto Task Force, announced a new direction for the agency, stating that the SEC is earnestly working toward a fair and workable crypto policy. The agency is now aiming to define what makes a digital asset a security using plain language and established principles.
Ripple Urges SEC to Focus on Regulation
Ripple not only won the case but is also using its platform to advocate for clearer rules. In February, the company criticized the SEC’s enforcement-first approach, arguing that its actions were based on vague standards. Ripple calls for straightforward market guidance and the adoption of tools like safe harbor rules and regulatory sandboxes, which have been successful in other countries.
Ripple's victory is a significant event for the entire crypto industry, emphasizing the importance of clear and fair regulation. This paves the way for a new phase in the development of crypto policy in the U.S.
