Ripple Labs has achieved a significant victory in its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC). The organization has decided to drop its appeal against XRP initiated in 2020. This decision could influence future regulatory principles in the U.S.
A Failed Attempt to Regulate Crypto Through Lawsuits
In 2020, the SEC accused Ripple of selling XRP without proper registration, claiming it was a security. The court ruled that digital assets were not securities when traded on crypto exchanges. However, it was revealed that Ripple violated securities laws when selling to institutional investors. In January, the SEC considered appealing but has now chosen to walk away from the case. Under Joe Biden's administration, the SEC took many crypto companies to court instead of setting clear rules. Industry leaders criticized this approach, arguing that it creates uncertainty and slows innovation. The Ripple lawsuit questioned whether digital assets should be treated as securities. The ruling in Ripple's favor could make it harder for the SEC to bring similar cases in the future.
SEC Dropped Lawsuits Against Other Crypto Firms
Ripple's case is not the only one where the SEC has backed down. Recently, the regulator has dropped lawsuits against other crypto firms, signaling a possible shift in strategy. The SEC has recently dropped lawsuits against Consensys, Coinbase, and OpenSea and ended its investigation into Robinhood's crypto operations. These moves suggest a shift towards clearer regulations instead of lawsuits.
XRP Surged Following the News
Following the news, XRP surged in price and is currently trading at $2.56, up by 13.77% in the last 24 hours according to CoinMarketCap data. Some experts believe XRP could rise to $5 to $7 in 2025, while others believe it could go even higher, around $7.47. However, some are not so sure, saying XRP might not exceed $3, while others expect it to drop to $1.
The Ripple versus SEC case resolution could have far-reaching implications for the crypto industry, representing a potential shift in the SEC's approach to regulating digital assets. This could open new horizons for development and innovation within the sector.
