The U.S. Securities and Exchange Commission (SEC) has concluded its long-standing lawsuit against Ripple Labs. This decision is hailed as a major victory for Ripple and the cryptocurrency industry at large.
The SEC’s Case Against Ripple
The legal saga began in December 2020, when the SEC filed a lawsuit accusing Ripple Labs and its executives of raising $1.3 billion through the unregistered sale of XRP tokens, which the agency classified as unregistered securities. This lawsuit was seen as one of the first major legal attacks on a cryptocurrency company.
A Long and Costly Legal Battle
The company has spent more than $150 million in legal fees fighting the SEC’s claims. The case dragged on for over four years, during which Ripple faced the possibility of a $125 million fine and severe restrictions on the sale of XRP.
Political Ties and Financial Influence
Reports indicate that Ripple's executives have been significant financial supporters of U.S. political campaigns, raising questions about the political backdrop to this development.
The SEC's decision to drop the lawsuit against Ripple is a critical signal for the crypto industry, potentially influencing future regulatory decisions and creating more favorable conditions for crypto companies.
