After nearly four years of intense legal battles, the long-standing case between the U.S. Securities and Exchange Commission (SEC) and Ripple has finally come to an end. The SEC, which initially filed the lawsuit in December 2020 claiming Ripple's cryptocurrency XRP was an unregistered security, has now dropped the appeal.
Garlinghouse Reflects on the Long Fight
In an interview with Bloomberg, CEO Brad Garlinghouse said, “This has been a long battle. But now, there is a lot more certainty for Ripple, and frankly, for me personally, because the SEC had sued me.” He revealed that the SEC has officially abandoned its appeal in the case, which had been ongoing since the lawsuit was filed in December 2020. Ripple scored a key victory in the summer of 2023 when Judge Torres ruled that XRP, the cryptocurrency at the center of the case, is not a security. This ruling marked a pivotal moment in the case.
The SEC’s Appeal is Dropped
Despite the SEC's withdrawal from its appeal, Garlinghouse clarified that the case is not entirely over. A cross-appeal is still pending, but the dynamics have shifted. “We go from being the defendant to the plaintiff,” he explained. “Now, we're in the driver's seat, deciding how we want to proceed.”
Ripple’s Legal Victory and the Industry’s Future
For Ripple, the outcome of this case is crucial not just for the company itself but for the broader crypto industry. Garlinghouse noted that Ripple had spent over $150 million defending the case, a legal expense not only aimed at protecting the company but also supporting the entire cryptocurrency sector.
The SEC’s decision to drop its appeal is a significant moment. Garlinghouse notes that it likely regrets bringing the case in the first place, especially given the judge’s ruling. However, some elements of the case remain unresolved, such as the $125 million civil penalty. Ripple has expressed interest in potentially reclaiming the fine, highlighting the lack of harm to investors.
